VSNL aiming to become a global giant (VSL)
Financial Express: In a move to consolidate its existing business Tata controlled VSNL has sought the route of actuations. The recent moves have strengthened VSNL’s international carrier business.
Last year VSNL acquired Tyco for $130million . Tyco has 60000 km of undersea cable that spans around North America, Asia and Europe. Recently VSNL acquired Teleglobe International Holdings. With this $ 239 million acquisition VSNL got Teleglobes 1400 wholesale customers and more than 650 enterprise customers.
VSNL almost enjoys monopoly here in India and with these acquisitions it has started its global expedition. But with this fact too and being the biggest telecom carrier here in India it is somehow not able to capitalize on its growth and show it on its balance sheet.
With competitors like Reliance too coming up with acquisition of FLAG Telecom which itself has 50000km of under sea cable the competition is getting tougher for VSNL.