Videsh Sanchar Nigam Ltd, the Tata group company, has revived its plans to enter the direct-to-home and broadband services.

Speaking to Business Standard, S K Gupta, managing director of VSNL, said that the company was doing feasibility study of the DTH and broadband business.

"With government keen to implement the conditional access system, we are doing the feasibility study to enter the DTH business," Gupta added.

Gupta claimed that the company is also in the process of tapping incoming overseas traffic by introducing virtual calling cards. "We are in the process of introducing virtual calling cards in the US."

US is the highest contributor to the incoming traffic to India. By introducing calling cards in the US, VSNL is planning to cash on the incoming traffic generated by the Indian settled in the US or travelling abroad.

Gupta also indicated that the company was also considering UAE as the next business site to launch its calling cards. "The next destination is UAE where large incoming traffic is flowing to India".

VSNL is now tapping new business considering falling revenues from its existing business - international long distance.

Ratan Tata, chairman of VSNL at the company's annual general meeting on September 1 had said, "The company will have to build another business as ILD business will be gone by next year."

Bharat Sanchar Nigam and Mahanagar Sanchar Nigam together route their ILD calls through VSNL. This exclusivity arrangement is only till March 2004.

In the light of the changing market conditions, VSNL has focussed its business on the broadband sector by offering corporate data services and Internet facilities.