The
only ILD service provider with an unshakeable monopoly, VSNL started facing
competition with opening up of the ILD market. Since then goings have been
tough, with: falling market share, decreasing profits and ADC issues, and the
thriving grey market. It had to devise a strategy to grapple with the dropping
ILD market share and change the nature of its original business was not
lucrative.
|
|
| Director Operations:
N Srinath |
| Area of Operation:
ILD, NLD, ISP, data services |
Address: Videsh Sanchar Nigam Ltd
Lokmanya Videsh Sanchar Bhavan, Kashinath Dhuru Marg, Opp. Kirti College,
Prabhadevi,
Mumbai-400028 |
| Phone: +91
22 56661837 |
| Fax: +91
22 56669029 |
| Website: www.vsnl.in |
|
|
|
| V&D
estimates |
CyberMedia
Research
|
|
| Highlights |
| • |
Invested Rs 10,000 crore in FY 2004–05 |
| • |
Tyco acquisition
|
| • |
Chennai
Singapore cable launched; 9 Gbps capacity lit |
| • |
Bharti
deal where 23,000 route Rkm was acquired from Bharti to create a
pan-India national backbone |
| • |
Awarded
the 'second operator' license in South Africa |
|
NLD and enterprise solutions were the alternates that helped bring it back on
track. Its financial results now reflect the benefits of the strong groundwork
that went into building the other verticals. After a 30 percent y-o-y slide in
revenues since 2002, FY 2004–05 saw a marginal growth of 1.2 percent when it
earned Rs 3,412 crore in revenue, compared to Rs 3,371 crore in FY 2003–04.
The company aims to become a global service provider for voice, data, and
corporate services. Currently its ILD business contributes 50 percent, NLD
around 7 percent, corporate data 26 percent (up from two percent in 2002), and
Internet 17 percent. Going ahead, the corporate data is expected go be a
high-margin segment where its offerings are: IPLCs, FR, ATM, and MPLS IP-VPN. As
an ISP, it has over 700,000 subscribers and offers broadband, dial-up, and Net
telephony services.
The company has realigned its business strategy to become a significant
global player through its newly established International Business Group.
Improved volumes in voice business and a strong performance in data business
contributed to sustained operating profits. With the acquisition of Tyco Global
Network and entry into broadband business, it is now present in many businesses
with operations in the US, Europe, Singapore, and Sri Lanka. It has laid 3,175
Rkm of cable between Chennai and Singapore with a design capacity of 5.12
Terabits of which 9 Gbps is available.
It will now look to consolidate its gains. As a group strategy, Tata will go
for more acquisitions to make a mark in the end-to-end telecom services.
TIEBU is the enterprise sales and marketing unit for the Tata Group's
telecom companies. TIEBU was formed with a view to offer customized, end-to-end
voice and data solutions to enterprise customers across India.
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