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VSNL has also acquired the network of Tata Power for Rs 239 crore (Rs 2.39 billion) - that would give it the ultimate advantage in large parts of Mumbai and Pune.
The cutting edge however, will come from the content, for which the VSNL is now tying up with international content providers.

The Next Move

Although VSNL has implemented its power conditioning strategy and is now considered as the global leading telecom and data carrier giant, its revenues are not in par with its size. Unfortunately the local competition and the deflatory nature of bandwidth prices have again created a matter of concern to this telecom giant. VSN now again need to review the implementation of its business models. It may restructure its existing business model or uncertainly we can expect a new business strategy from the VSNL camp. Making a first move in this direction Tata has appointed Darryl Green ( the earlier CEO of Vodafone KK Japan) as the CEO of Tata Tele services, who is well known for turning the companies around.

According to industry gazers VSNL is now working to adapt to the emerging trend in the global telecom and IT industry. It is now planning to provide the software and network implementation services to its customers world wide. This means that instead of merely providing connectivity to companies, VSNL will offer integrated network and IT services, a fuller, more complete package. In fact VSNL has already made a tie up with global anti-virus leader Trend Micro to offer comprehensive PC protection solution, which incorporates antivirus, spyware protection, firewall.

The key of this concept lies with one of the parent group companies of VSNL, i.e. The Tata Consultancy Services (TCS). "We can combine the domain knowledge that we have within the Tata group across industry verticals - be it automobiles or services - with the technology and client strengths of TCS and (TCS subsidiary) CMC to provide a corporate customer with a complete telecom-IT solution," explains VSNL's head of corporate strategy, Srinivasa Addepalli.

The TCS Synergies

A lot of global companies are outsourcing work to TCS. So now it can offer them a single service point both in software and telecommunications. It always works better when they come from the same organization.

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* Contributed by: -
Ashutosh Garg,
(Final year MBA Student)
ICFAI Business School, Kolkata