Strategically, what does your stake in VSNL bring to the table for the Tatas?
It is really a question of value migration. This has taken place for the Tatas in the form of a last mile presence in terms of Internet connectivity, international long distance (ILD) and national long distance (NLD) telephony with the VSNL acquisition. To have control over value migration, a presence in value sectors is mandatory. Over time, profitability in each of these segments will depend on prevailing demand and supply.

What specific benefits do you see for the Tatas in VSNL?
As I have said, it is a question of having a presence in all these segments as also to mitigate risks. In the case of VSNL, we will have to think of how innovatively we can make use of what is available. For instance, they have good infrastructure with a quality workforce. Therefore, there is a huge opportunity for us to enhance those values.

We have to understand how much value we can derive from VSNL. I can say that the value that has been derived is greater than what we have put in. In other words, value in a synergised manner is greater than one. Importantly, this has allowed us to be an integrated telecom services provider with a significant presence in all segments.

Post-VSNL, isn’t it necessary for you to relook at your plans and priorities for the sector?
The details in the drawing board will need to be revisited to refine and make choices in terms of what to do. We will not redraw our strategy. We will only conduct a reality check so that we can make a choice. I think this process should last for the next six-to-eight weeks. Anyway, we were ready with our options in case we did not get VSNL.

What sort of synergies do you see between the Tatas’ existing business operations and what VSNL can offer?
We have to increase synergy between all our businesses. In the case of the Internet operations, VSNL’s strength is their access and huge client base while Tata Nova has corporate data centre management skills. There could be areas of duplication also and we also will have to look for ways to cut costs. The end result will be to identify strengths and weaknesses and synergise operations.

Some key appointments with respect to the constitution of the board of directors are awaited. Are you likely to be a part of the board?
It is too early for me to comment on this. The issue has not been addressed so far and will only happen in the course of time.

VSNL has huge cash reserves (around Rs 1,500 crore) even after the two dividend pay-outs. How is this cash proposed to to be employed?
It is a little early to comment on this. I can only say that the cash could be employed by the board of VSNL in a manner that they deem appropriate.

For long, there has been talk of one telecom entity for the Tatas which would encompass all telecom activities of the group. What stage is that project at?
I wish to say, it is not a telecom entity, as is popularly believed. The objective has been to create a telecom business group. In one sense, this already exists with the Birlas in the form of BTAL. We are convinced about telecom as a business potential and it’s our desire to be a major player.

What is the exact status of the BPL-Batata deal? When does one see it going through?
I must say that it is first of all a good proposition and will be beneficial for all the parties involved. We are just hoping that the hitches are sorted out in an amicable manner and at the earliest.