VSNL has always tried to bring a new twist to its business model. In spite of loosing its monopoly in the Interational Long Distance Calls, VSNL has survived and has been successful in shedding its years older typical public sector enterprise (PSU). It was altogether a different matter that it was regarded as the bule-chip among the PSU's. It has taken a major beating with the privatisation programme and has tried to restructure its business model a number of times.

VSNL started its restructuring journey with the formation of TIEBU in April 2003 with the objective of addressing the telecom needs of selected corporate Customers, followed by the incorporation of VSNL International. In 2004 VSNL took the path of mergers and acquisitions by acquiring Tyco Global Networks in 2004 and recently it has acquired Teleglobe systems to give a push to its global strategy. But the revenue structure over the last three years tells the comprehensive story of to what extent it has been successful in implementing these strategies.

Now VSNL is trying to play a new magic card that will help it counter competition as well as to face the deflatory character of bandwidth prices. And this trump card lies in another VSNL parent group (TATA) company- Tata Consultancy Services (TCS).

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