Videsh Sanchar Nigam Limited (VSNL), India's leading provider of international telecommunications and Internet services, today announced that the company has agreed to acquire Tyco Global Network, one of the world's most advanced and extensive submarine cable systems for $130 million. The acquisition, which remains subject to government approval in the United States, India and other countries, would give VSNL control over a network that spans 60,000 kilometers (37,208 miles) and three continents. 

"The agreement is a major step forward in our ongoing drive to offer our enterprise and carrier customers seamless, end-to-end telecommunications solutions that circle the globe," said Mr N. Srinath, director of operations, VSNL. "This agreement, coupled with the submarine cable we plan to launch shortly connecting India with Singapore, will give customers a new choice in global data services. Furthermore, the timing of this transaction is well suited to our international expansion plans."

VSNL is part of the Rs 61,000 crore Tata Group, which recently listed Tata Consultancy Services (TCS) on the Bombay Stock Exchange. The TCS listing was the largest initial public offering by a private sector corporate in Indian history. VSNL intends to leverage the IT strengths of the Tata Group in providing services to large enterprises across the world. 

"This agreement will allow us to provide our enterprise and carrier clients worldwide with customized and robust connectivity solutions under one trusted global brand," said Mr. Vinod Kumar, Executive Director, VSNL's International Business Group. 

The agreement with Tyco follows notice from the Federal Communications Commission (FCC), of USA that VSNL America, Inc. was granted section 214 authority to provide international telecommunications services from the United States. VSNL America, Inc. is.VSNL's US subsidiary. 

About VSNL
Videsh Sanchar Nigam Limited (VSNL) is India's leading provider of International Telecommunications and Internet Services and the first telecom service provider in the world to get the prestigious TL 9000 certification. As the country's leader in International Long Distance services and with a strong pan-India National Long Distance presence, VSNL is the leader in the Corporate Data Market in India today with a strong service offering covering Private Leased Circuits, Internet Leased Lines, Frame relay, ATM and MPLS based IP-VPN services. With established relations with over 80 carriers across the globe, VSNL today has a strong infrastructure base that covers multiple gateways, earth stations and submarine cable systems. 

VSNL is now rapidly growing its retail and corporate presence under the Tata Indicom brand through its products like high speed broadband, dial-up Internet, net telephony and calling cards, and has an Internet subscriber base of over 750,000 subscribers. The Company is consolidating its presence in the Internet space with an increased focus on the Retail Broadband business. 

VSNL also offers a host of other value added services that include Television / Video uplinking, Program Transmission Services, Frame Relay Services and Inmarsat Services. 

VSNL is expanding its global presence and has recently set up operations in the United States of America, Singapore, Europe and Sri Lanka. Its existing international connectivity capabilities, both undersea as well as satellite, offer the greatest diversity in India, which is critical for all customer segments, encompassing wholesale, corporate and retail. VSNL is listed across all the major stock exchanges in India and also has its ADRs listed on the New York Stock Exchange. (www.vsnl.in)


Forward-looking and cautionary statements:
Certain words and statements in this release concerning VSNL and its prospects, and other statements relating to VSNL's expected financial position, business strategy, the future development of VSNL's operations and the general economy in India, are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements of VSNL, or industry results, to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding VSNL's present and future business strategies and the environment in which VSNL will operate in the future. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, changes in government policies or regulations of India and, in particular, changes relating to the administration of VSNL's industry, and changes in general economic, business and credit conditions in India. Additional factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements, many of which are not in VSNL's control, include, but are not limited to, those risk factors discussed in VSNL's various filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov. These forward-looking statements speak only as of the date of this release. VSNL expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in VSNL's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.