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Reliance contract win could be huge for VSNL

Rahul Rathi — Fri, 14 Jul 2006 05:03:35 +0000

Financial Express: One of India’s biggest company, Mukesh Ambani led Reliance Industries Ltd has invited expression of interest (EoI) from the Tatas-controlled Videsh Sanchar Nigam Ltd (VSNL) to meet the bandwidth requirement of its 1500-city foray into retail. Reliance is planning a major foray into the retail venture, it would require to connect all its stores to its central server with lots of data transfer. Officials said that RIL has also asked VSNL (NYSE: VSL) for similar EoI for managing the entire IT solutions of the company. RIL recently announced its ambitious retail foray with an equity investment of Rs 10,000 crore to be gradually scaled up to Rs 25,000 crore. it is aiming at retailing food and grocery products across 1,500 towns and cities in the country.

This could be big positive news for VSNL to enter into retail in a big way with Reliance where it could enter newer markets and spread its network in rural small towns and cities where until now it didn’t have much presence.

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VSNL aiming to become a global giant (VSL)

Rahul Rathi — Thu, 29 Jun 2006 04:01:05 +0000

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.

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VSNL’s Q4 net profit estimated to go down

Rahul Rathi — Tue, 27 Jun 2006 04:06:37 +0000

MoneyControl: CNBC T-TV18 provides the following estimates for Videsh Sanchar Nigam Limited (VSNL) (NYSE: VSL):

- Q4 net profit is expected to go down 25.8% to Rs 111.3 crore (Rs 1.11 billion) from Rs 150.1 crore (Rs 1.50 billion) quarter-on-quarter, QoQ.

- Revenues are seen going up 2% to Rs 999.4 crore (Rs 9.99 billion) from Rs 977.5 crore (Rs 9.77 billion) QoQ.

- Company’s net profit is also expected to go down 72% to Rs 111.3 crore (Rs 1.11 billion) from Rs 399.2 crore (Rs 3.99 billion) YoY.

- Revenues are seen going up 11% to Rs 999.4 crore (Rs 9.99 billion) from Rs 901.7 crore (Rs 9.01 billion) YoY.

Clearly as I said earlier, there is too much competition here and the management is also not clear about the future there are talks of land sale and promoter holding cross holdings which does not give a clear picture here.

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Citigroup says it owns 2.1% stake in VSNL

Rahul Rathi — Mon, 26 Jun 2006 02:27:24 +0000

Business Standard: Citi group clarified it doesn’t hold 4.2 % stake in VSNL (NYSE: VSL) which was announced in many major newspapers and business channels but it holds 2.1 % in this TATA group company. Currently, Tata group owns 44.25% stake in VSNL and the government of India owns 26% while institutional investors hold 19.14% and others including the public hold 9.58%.

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VSNL loosing ground as ISP

Himanshu Pandya — Wed, 12 Apr 2006 03:27:15 +0000

Business Standard: Videsh Sanchar Nigam Limited (NYSE: VSL) is loosing ground as an ISP provider. According to the Telecom Regulatory Authority of India’s (TRAI) performance indicator report released on Monday, VSNL has lost 8.31 per cent of its subscribers for the quarter ended December 2005. Moreover the company’s market share has dropped to 6.97%. VSNL’s subscriber base has fallen by 20.56 per cent for the quarter ended September 2005 and 9 per cent for June 2005. Also, in the quarter ended March 2005 there has been a 24 per cent decline.

Currently BSNL, MTNL (NYSE: MTE) and SIFY Corp. (Nasdaq: SIFY) are the three leading ISP’s in India.

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VSNL (NYSE: VSL) and Sify Corp. (Nasdaq: SIFY) to run cybercafes at 82 railway stations

Himanshu Pandya — Sun, 02 Apr 2006 04:19:38 +0000

According to this story in Financial Express, Sify Corp. and Videsh Sanchar Nigam Limited (VSNL) will run RailTel express cybercafes at 83 Indian Railway stations. RailTel Corp of India Ltd, the Rs 34-crore nationwide broadband telecom and multimedia network under the ministry of railways, has decided to set up cybercafes at various railway stations in the country. It plans to open cafes at another 270 stations next year. All the cybercafes will be based on a Franchise model and will include revenue sharing. This agreement will add to Sify Corporation’s more than 3000 Iway cybercafes in India.

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