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Our Bureau

New Delhi , July 4

Tulip IT Services Ltd, provider of end-to-end data connectivity, has been awarded the letter of intent for long distance telephony licence by the Department of Telecom (DoT). The company is planning to focus on data services and is not planning to enter the voice telephony market.

Tulip had applied for a long distance licence after DoT made it mandatory for operators wanting to offer virtual private network (VPN) services to take either an NLD or ILD licence. Tulip has been offering VPN services for the past year in the domestic market and now plans to offer the leased line service to international customers. VPN service is used by corporate and institutions to connect their offices spread in various parts of the country. Companies such as BSNL, Sify, Hughes, Bharti and VSNL are some of the players in the market estimated to be over Rs 2,000 crore.

"Tulip foresees the ILD licence as a business opportunity as it will help Tulip to predominantly offer international data connectivity solutions to any customers across the world. In addition, the company will be able to provide high-end services in the burgeoning VPN bandwidth market.

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