VSNL Announces Construction of $250 Million Express TGN Eurasia Cable System

  
    
  
  
    
      VSNL (NYSE:VSL), a leading communications solutions provider, announced 
      today the company is constructing a new TGN Eurasia Cable System linking 
      Mumbai directly to Paris, London and Madrid via Egypt. The new cable 
      system is being built in partnership with SEACOM and Telecom Egypt (TE), 
      and will provide VSNL with 1.28 terabit of new capacity on this route 
      during 2009.
    
    
      The TGN Eurasia Cable System will offer express connectivity between 
      India and Europe, and will also have future options for additional 
      connectivity in the Gulf region as well as multiple locations in Europe. 
      The TE North solution was selected based upon TE’s 
      long experience in operating this route in a highly reliable fashion as 
      well as offering diversity from both current and future consortium 
      systems.
    
    
      When combined with VSNL’s significant capacity 
      ownership on other cable systems and its privately owned TGN Atlantic 
      and TGN-TIC cable systems, the TGN Eurasia Cable System will enable the 
      company to offer seamless and diverse connectivity between India, South 
      East Asia, South Africa, Western Europe and the USA.
    
    
      “The plans to build the TGN Eurasia Cable 
      System coupled with our recent announcement to build the TGN-Intra Asia 
      Cable System is a major step towards VSNL’s 
      vision to offer seamless global connectivity at affordable prices,” 
      said Mr. Vinod Kumar, President, Global Data Solutions, VSNL. “The 
      TGN Eurasia Cable System will serve the increasing demand for bandwidth 
      in the region and offer more options for route diversity and redundancy. 
      Moreover, the path will complement the SEA-ME-WE-3 and SEA-ME-WE-4 cable 
      systems and will enable us to provide global express capacity solutions 
      from India going West, and with TGN-TIC, from India going East.”
    
    
      “This partnership with VSNL allows 
      connectivity for the SEACOM network into emerging global markets 
      including key destinations like India and Europe as well as onward 
      connectivity to South East Asia and the USA,” 
      said Brian Herlihy, President of SEACOM. “We 
      are thrilled to enter into this partnership with a truly international 
      provider with a world-class submarine cable network, to support our 
      customer connectivity needs.”
    
    
      “Telecom Egypt admires VSNL's expertise and 
      global leadership in the bandwidth business and their proven skills in 
      cable development and build-outs,” said 
      Mohamed Elnawawy, VP for International, Wholesale and Regulatory Affairs 
      of Telecom Egypt. “We look forward to working 
      with VSNL as a TE North anchor customer. VSNL's track record of 
      innovation will enrich the project and empower the customers.”
    
    
      This system was made possible through VSNL’s 
      partnerships with TE and SEACOM, which will help cater to the surging 
      demand in bandwidth from Africa to both the developed and emerging 
      markets. VSNL maintains a global transmission network of over 206,356 
      route kilometres comprising of both terrestrial and submarine cable 
      assets.
    
    
      For more information please visit: www.vsnlinternational.com
    
    
      About VSNL
    
    
      Videsh Sanchar Nigam Limited, along with its global subsidiaries (VSNL) 
      is a leading global communications solutions company offering 
      next-generation voice, data and value-added services to enterprises, 
      carriers and retail consumers. A member of the $ 29 billion Tata Group, 
      VSNL was voted the Best Wholesale Service Provider at the World 
      Communications Awards, 2006. VSNL is one of the world’s 
      largest providers of wholesale international voice services and operates 
      one of the largest global submarine cable networks. VSNL’s 
      customer base includes 1,500 carriers, 450 mobile operators, 10,000 
      enterprises, about 500,000 broadband and Internet subscribers and 450 
      Wi-Fi public hotspots.
    
    
      Rated amongst the Top 100 Emerging Global Challengers by the Boston 
      Consulting Group, VSNL has offices in over 35 countries including the 
      United States of America, Canada, the United Kingdom, South Africa, 
      Singapore, Hong Kong, Sri Lanka and India. VSNL’s 
      global transmission network of over 200,000 route kilometers and its IP 
      core with 200 points of presence, enable a range of services that 
      include voice, private leased circuits, IP VPN, Internet access, global 
      Ethernet, hosting, mobile signaling and other IP services.
    
    
      Videsh Sanchar Nigam Limited is listed on the Bombay Stock Exchange and 
      the National Stock Exchange of India, and its American Depositary 
      Receipts (ADRs) are listed on the New York Stock Exchange (NYSE:VSL).
    
    
      www.vsnl.com
    
    
      Forward-looking and cautionary statements
    
    
      Certain words and statements in this release concerning VSNL and its 
      prospects, and other statements relating to VSNL’s 
      expected financial position, business strategy, the future development 
      of VSNL’s operations and the general economy 
      in India, are forward-looking statements. These forward looking 
      statements include, among others, statements concerning VSNL’s 
      communications and information services business, its advantages and VSNL’s 
      strategy for continuing to pursue its business, the anticipated 
      development and launch of new services in its business, the anticipated 
      dates on which VSNL will begin providing certain services or reach 
      specific milestones in the development and implementation of its 
      business strategy, the growth and recovery of the communications and 
      information services, industry, expectations as to its future revenue, 
      margins, expenses and capital requirements and other statements of 
      expectations, beliefs, future plans and strategies, anticipated 
      developments and other matters that are not historical facts. Such 
      statements involve known and unknown risks, uncertainties and other 
      factors, including financial, regulatory and environmental, as well as 
      those relating to industry growth and trend projections, which may cause 
      actual results, performance or achievements of VSNL, or industry 
      results, to differ materially from those expressed or implied by such 
      forward-looking statements. Such forward-looking statements are based on 
      numerous assumptions regarding VSNL’s present 
      and future business strategies and the environment in which VSNL will 
      operate in the future. The important factors that could cause actual 
      results, performance or achievements to differ materially from such 
      forward-looking statements include, among others, failure to increase 
      the volume of traffic on VSNL’s network, 
      failure to develop new products and services that meet customer demands 
      and generate acceptable margins, failure to successfully complete 
      commercial testing of new technology and information systems to support 
      new products and services, including voice transmission services, 
      failure to stabilize or reduce the rate of price compression on certain 
      of VSNL’s communications services, failure to 
      integrate strategic acquisitions and changes in government policies or 
      regulations of India and, in particular, changes relating to the 
      administration of VSNL’s industry, and, in 
      general, the economic, business and credit conditions in India. 
      Additional factors that could cause actual results, performance or 
      achievements to differ materially from such forward-looking statements, 
      many of which are not in VSNL’s control, 
      include, but are not limited to, those risk factors discussed in VSNL’s 
      various filings with the United States Securities and Exchange 
      Commission. These filings are available at www.sec.gov