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VSNL to provide VPN services globally

July 02, 2003 14:52 IST

Videsh Sanchar Nigam Limited will soon start offering virtual private network services to the United States and Europe.

The Tata-managed company announced the acquisition of assets and network of an existing international IP-VPN solution provider in the US, Europe and Far East last month, saying it would "catapult VSNL into the league of global telecom players. It enhances VSNL's existing network capabilities and gives us a ready VPN platform in high traffic regions in the US, Europe and Far East," N Srinath, Director (operations), VSNL, said on Wednesday.

The VPN network will enable VSNL to offer end-to-end voice and data services on its own network.

The ready-for-service network will give VSNL a head-start, helping it offer services almost immediately. New services like video-on-fibre to US/Europe and also managed IP services can also be provided that would now be carried on the end-to-end VSNL-managed network, Srinath added.

International VPN is a rapidly growing business, serving the global needs of Indian IT services companies and multinational companies.

In India, the VPN market is still nascent. However, certain estimates place the market size to grow exponentially to reach about Rs 400 crore (Rs 4 billion) over the next three to four years.

VSNL is expected to sell and service Indian as well as international customers on its network now spread across the globe.

On June 24,2003, VSNL formed a fully owned subsidiary, VSNL America Inc, as a Delaware Corporation in the US.

Eventually, this subsidiary of VSNL is expected to own and operate the international assets.