VSNL makes itself in Teleglobe's image
Hindustan Times — August 31, 2006

The Tata-controlled VSNL has re-oriented the management structure of its businesses, partly modelling it on the structure followed by its subsidiary Teleglobe International Holdings. VSNL had acquired Bermuda-based Teleglobe in 2005 for $239 million. The acquisition made VSNL the world's third largest player in global voice business behind AT&T and MCI. The acquisition was completed in February 2006. In 2005 it had also acquired Tyco Global for $130 million.

The businesses of VSNL are now divided into three broad business units. These are wholesale voice, enterprise data and retail business that include retail Internet products mainly sold in India. The global headquarters are now based in Singapore. Teleglobe's businesses were also divided in a similar manner into three operational units namely - voice, dataIP and mobile. The global wholesale voice business is now headed by Michel Guyot who is based in Canada, while Vinod Kumar is heading the enterprise data business that serves corporate customers, and Shashi Kalathil is heading the retail businesses.

Kumar sits in Singapore and Kalathil is in India. Even though Guyot comes from Teleglobe, the Indian part of VSNL's wholesale voice business now reports to him. Similarly, the Indian arms of the enterprise business also report to Kumar. This formalised structure has been put in place recently after the integration of Teleglobe into the group. It involved reorganising the businesses of around 56 companies and businesses across various countries. The three businesses in all the countries now report directly to the business heads.

"VSNL and Teleglobe followed the same business model. Hence, a three-way structure was formed to effectively manage the affairs of a global company," says N Srinath, executive director, VSNL. The global wholesale voice business includes international long distance voice, national long distance voice and calling cards. However, the calling cards business has now been discontinued following the TRAI guidelines.

The enterprise data business provided solutions to large, medium and small-scale enterprises for their communication needs in partnership with Tata Consultancy services and CMC. The retail businesses that can be classified as Internet retail includes dial-up Internet services, broadband business, wi-fi / cybercafes and Internet telephony. The company also plans to start operating telecom networks in countries that are liberalising the sector and the first steps have already been taken in South Africa.