The Delaware-based subsidiary is intended to add value to the operations of VSNL in the area of Internet services by facilitating end-to-end management of the Internet bandwidth from India all the way to the US, according to a VSNL release.

S K Gupta, managing director of VSNL, said, "The US market has been the hub of activity for Internet and given the high India-US traffic, we deem it vital for VSNL to have a presence in the US with a view to serve the interests of our data and IP-VPN customers, both in the US and India more effectively."

VSNL has already set up points of presence (PoPs) in New York as well as in Europe to provide connectivity between these nations and the Indian sub-continent.

This is VSNL’s third international foray. The earlier ones are United Telecom, a joint venture with MTNL, and Telecom Consultants India with Nepal Ventures in Nepal to provide WLL-based services.