Videsh Sanchar Nigam Ltd (VSNL), the Tata group’s international telecommunication service provider, is foraying into new foreign markets.

It has sought a licence for providing international long-distance services in Sri Lanka, and has set up a "point of presence" office in the US for voice over Internet protocol services.

S K Gupta, managing director of VSNL said, "The company is looking at various overseas opportunities. We have sought a licence for providing international long-distance services in Sri Lanka."

VSNL already has a presence overseas in a joint venture company called United Telecom. The venture is being floated along with Telecommunications Consultants India, Mahanagar Telephone Nigam (MTNL) and Nepal Ventures Pvt Ltd. It will provide limited mobility services in Nepal.

Several Indian telecom companies are leaping into the international arena to hedge against the changes taking placing in the domestic market. The telecom sector in the country has undergone significant changes in tariff plans.

Also, with the government liberalising the international long-distance sector with effect from April 1, 2002, VSNL is facing severe competition from Bharti and Data Access.

Reliance and Bharat Sanchar Nigam Ltd are also expected to launch international long-distance services soon.

Besides, overall domestic tariffs have declined, resulting in sharp fall in revenues.

While VSNL has opened up a point of presence in New York for voice over Internet protocol services, MTNL plans to enter the national long-distance and basic telecom sector in Mauritius and Malavi.

It had earlier planned to pick up equity in Sri Lanka Telecom. However, the Sri Lankan government recently offloaded 15 per cent equity in Sri Lanka Telecom in the primary market.

Even Essar Teleholdings, the telecommunications arm of the Essar group, is eyeing the Lebanese cellular market.

It has bid for two state-owned companies, Cellis and LibanCell, as part of a consortium with international partners.