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VSNL’s IPLC volumes tripple in ’03
Financial Express - June 2, 2003

Internet gateway and services provider Videsh Sanchar Nigam Ltd’s (VSNL) internet private leaseline circuit (IPLC) bookings trippled in financial year ended March 31, 2003, with data traffic accounting for over 25 per cent of its revenue.

"IPLC segment has grown significantly during the fiscal, due to an increase in call centre operations and software developments in India, apart from the country becoming a back office for outsourcing operations," VSNL head corporate business VS Shridhar said here on Sunday.

The Tata Group firm’s 64 kbps equivalent IPLC circuit bookings grew to 35,712 circuits in FY-03, compared to 10,907 bookings recorded in FY-02, he said, adding that data traffic accounted for about 25 per cent of VSNL’s total revenues, compared to 11 per cent in FY-02.

"The increase in data was predominantly from the US, followed by the UK, far eastern countries, Japan and Hong Kong, while multinational companies’ call centres and back office operations in India accounted for a major share of data traffic," Mr Shridhar said. VSNL’s IPLC circuit bookings in the first month of the current fiscal were at 1,369, while bookings from April 2002 to April 2003 stood at 37,081 circuits, he added.

The ISP’s revenue model is expected to be stronger this fiscal due to a growth in data market in India and its recent foray into the National long distance arena. VSNL is also seeking an international long distance provider license in Sri Lanka, and is also planning to offer CDMA services in Nepal ‘shortly’.

Meanwhile, commenting on the disruption in the atlantic submarine cables due to algerian earthquake, Mr Sridhar said they were fixed within three to 36 hours.

"The data traffic was immediately shifted over to the Pacific cable systems and an interruption was not felt in the country," he said. VSNL connects the sub-continent with the rest of the world over five submarine cable systems including sea-me-we-2 and 3, sat-3/wasc/safe and flag.

The Tata Group company alternates traffic between the Pacific and atlantic cable systems to avoid clogging of the fibre optic lines.

 

 

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