Videsh Sanchar Nigam Limited, India's leading provider of international telecommunications and Internet services, on Monday announced that the company has agreed to acquire Tyco Global Network, one of the world's most advanced and extensive submarine cable systems for $130 million.
The acquisition, which remains subject to government approval in the United States, India and other countries, would give VSNL control over a network that spans 60,000 kilometers (37,208 miles) and three continents.
"The agreement is a major step forward in our ongoing drive to offer our enterprise and carrier customers seamless, end-to-end telecommunications solutions that circle the globe," said N Srinath, director of operations, VSNL.
"This agreement, coupled with the submarine cable we plan to launch shortly connecting India with Singapore, will give customers a new choice in global data services. Furthermore, the timing of this transaction is well suited to our international expansion plans."
VSNL is part of the Rs 61,000 crore Tata Group, which recently listed Tata Consultancy Services on the Bombay Stock Exchange. The TCS listing was the largest initial public offering by a private sector corporate in Indian history. VSNL intends to leverage the IT strengths of the Tata Group in providing services to large enterprises across the world.
"This agreement will allow us to provide our enterprise and carrier clients worldwide with customised and robust connectivity solutions under one trusted global brand," said Mr. Vinod Kumar, Executive Director, VSNL's International Business Group.
The agreement with Tyco follows notice from the Federal Communications Commission, USA, that VSNL America, Inc. was granted section 214 authority to provide international telecommunications services from the United States.
VSNL America, Inc is VSNL's US subsidiary.
