Teleglobe delisted from Nasdaq VSNL sees 200 pc rise in revenues

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Our Bureau

Mumbai, Feb. 14

VIDESH Sanchar Nigam Ltd has announced that it has completed the acquisition of Teleglobe International Holdings and that its consolidated revenues for 2006-2007 could increase by as much as 200 per cent.

During the current fiscal, the next one-and-a-half months' performance of Teleglobe will show in the consolidated results of VSNL.

The VSNL group will now be among the largest international wholesale telecommunications carriers.

Last year, VSNL had agreed to buy Teleglobe from its shareholders for $239 million including debt. With the completion of the acquisition on Monday, Teleglobe also delisted from Nasdaq as of the close of the market on February 13, 2006.

The combined company will offer services as both VSNL International as well as Teleglobe, depending upon which name is better known in the geography in which the services are being offered, said Mr. N Srinath, Executive Director, VSNL, in an audio-conference from Bermuda.

Teleglobe will serve as the product brand for the voice, mobile and Internet protocol transit wholesale services. VSNL International will be the product brand for wholesale leased line and Ethernet offerings, as well as for the enterprise portfolio.

With access to large volumes in voice (VSNL and Teleglobe now enjoy 17 billion international minutes of traffic), VSNL will be able to offer better termination charges within India, said Mr Srinath. On the enterprise front, corporates can be offered better offerings to various geographies in various combinations.

(This article was published in the Business Line print edition dated February 15, 2006)
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