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VSNL is now trying to adapt to the emerging trend of verticalization in telecommunication and IT. How well it can integrate this model in its current business structure, will be the matter of discussion.

About VSNL

VSNL, India's leading international telecommunications service provider, was incorporated on March 19, 1986, to take over the activities of the erstwhile Overseas Communication Services (OCS) with effect from April 1, 1986. Backed by over 25 years of overseas communications experience, the company today operates a network of 32 earth stations, 12 international voice gateways, six operational submarine cable systems and 22 internet 'points-of-presence' to provide a range of basic and value-added voice and data services to corporate and retail customers in India.

Since the privatization of the company in February 2002, the Indian government owns approximately 26 per cent of VSNL's equity and the Tata Group about 45 per cent. Consequently, VSNL was taken over under the administrative control of TATAs - India's best known industrial house - that VSNL is now charting its future course .The balance is held between various overseas equity holders, including ADR holders, Indian institutions and the Indian public. VSNL's shares are listed in the bourses at four metros and the National Stock Exchange, and its ADRs at the New York Stock Exchange. The revenues of the company for the financial year ended March 2002 were about Rs 71 billion (US$ 1.4 billion). VSNL has a workforce of about 2,900 employees.

( For shareholding pattern of VSNL , please see Exhibit-1(a))

The company has been the premier provider of international voice and data services, carrying over three billion minutes of traffic in 2001. It has bilateral relations with international traffic carriers in over 75 countries. VSNL is also the market leader in providing international IPLC and frame relay services in India.

Videsh Sanchar Nigam Limited, first telecom service provider in the world to get the prestigious TL 9000 certification, is India's leading provider of International Telecommunications and Internet Services.

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