Videsh Sanchar (NYSE:VSL)
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From Jul 2019 to Jul 2024
Videsh Sanchar Nigam Limited, VSNL (NYSE: VSL), the
leading provider of international communication solutions, announced
today the completion of its acquisition of Teleglobe International
Holdings Ltd. By leveraging Teleglobe's extensive global reach,
established operational strengths, and depth of carrier relationships
worldwide, VSNL's international division, VSNL International, is
poised to deliver a comprehensive portfolio of next-generation carrier
and enterprise solutions.
The new combined company will own and operate one of the world's
largest international mobile, data, and voice networks with coverage
to more than 240 countries and territories. The foundation of the new
company's capability will be the integration of VSNL's leading
pan-India presence and unequalled cable diversity to and from India,
the world's largest designed global backbone capacity, and Teleglobe's
network.
With its acquisition of Teleglobe, the company's wholesale
customers will benefit from superior network reach, and scalability
from a single partner worldwide for voice, data and mobile services.
As part of its strategy to deliver next-generation solutions to
Fortune 1000 customers, VSNL International will leverage Teleglobe's
network and capabilities to further expand services offered through
its Global Business Pathway providing the world's leading businesses
with diversified multi-technology connectivity, significant commercial
flexibility, and innovative managed services.
"The Teleglobe acquisition is a critical step toward our vision to
become a global industry leader providing customers with converged
communications solutions," comments Mr. N. Srinath, Executive
Director, VSNL. "Our focus in recent years has been to expand our
presence into new markets and provide a complete portfolio of
solutions to our global client base. We are now a key player in the
international wholesale market, supporting more than 1,400 customers.
Our complementary networks and capabilities will further drive mobile,
data and voice innovation for our enterprise customers."
Liam Strong, President and Chief Executive Officer, Teleglobe,
states, "The integration of assets, strengths, and resources will
benefit our customers and employees. As a new VSNL company and member
of the TATA Group, Teleglobe will gain unprecedented financial
stability, the ability to enhance our offerings to the marketplace,
and capacity to further its 50-year strong commitment to the wholesale
sector."
The combined company will operate under the name of VSNL
International, and will provide the wholesale and enterprise sectors
with key mobile, data and voice offerings. Teleglobe will continue to
serve as the product brand for the Voice, Mobile and IP Transit
wholesale services. VSNL International will remain the product brand
for the company's wholesale IPL and Ethernet offerings, as well as the
full Enterprise portfolio.
Complementary Networks, Product Suites, Legacy, and Shared Culture
of Quality
"Our decision to pursue the Teleglobe acquisition was based on
several key areas of synergy, including complementary global
infrastructure and product offerings, as well as a shared culture
dedicated to quality performance and committed to long-term industry
growth," adds Mr. N. Srinath.
The combined company represents:
People
-- Representation in more than 35 countries
Relationship Assets
-- Global Customer base of 1,400 wholesale customers and more
than 650 enterprise customers
Global Infrastructure
-- Global, robust and scalable network capacity and seamless
connectivity, that includes 206,356 km of terrestrial network
fiber and subsea cable
-- 275 PoPs in 25 Countries and access to 5 geo-stationary
satellites through more than 30 dedicated earth stations
-- Ownership in 100+ sub sea and terrestrial cable systems
-- Full ownership of Tata Indicom Cable (Chennai - Singapore)
-- Network Administrator role and partial ownership in SEA-ME-WE4
(South East Asia-Middle East -Western Europe)
Voice
-- World's largest international wholesale carrier with more than
415 combined direct and bilateral relationships with leading
international voice telecommunications providers and more than
17 billion minutes annually of international wholesale voice
traffic
-- Principal provider of public international telecommunications
services in India, linking the domestic network to over 240
territories worldwide
Data
-- Legacy-free, global MPLS network with reach throughout India
-- Global, India and India Metros Ethernet over MPLS and SONET
capabilities
-- Tier One IP service provider
-- International IPv6 connectivity leader
-- Principal provider of International data services in India
Mobile
-- Connection to over 400 mobile operators worldwide
-- Principal provider of signaling conversion services to enable
GSM roaming to and from North America
-- Content delivery services
Acquisition Details
Teleglobe was acquired for about $239 million, comprising payment
of $4.50 per share to Teleglobe shareholders and assumption of net
debt. At Teleglobe's current revenue levels, the acquisition could
increase VSNL's annual revenues by up to 200% in 2006-07.
Shares of Teleglobe common stock, which prior to the merger traded
on the Nasdaq National Market under the symbol "TLGB", were delisted
from trading as of the close of the market on Feb. 13, 2006.
About VSNL
Videsh Sanchar Nigam Limited (VSNL), a part of the Tata Group, is
a leading international telecommunications company. VSNL has, with the
acquisition of Teleglobe, become one of the world's largest carriers
of international voice complementing its emergence as the largest
provider of submarine cable bandwidth. VSNL has a global presence
including operations in USA, Canada, UK, South Africa, Singapore, Sri
Lanka and India making it the first Indian truly global
telecommunications company. Its range of service offerings include
wholesale voice, private leased circuits, IP MPLS VPN, Internet
access, hosting, mobile signaling and several other IP services. The
company is now poised to offer managed data services and deliver
end-to-end telecommunications solutions to carriers and enterprises
globally. VSNL, a pioneer in offering Internet services to individual
customers now offers a full slew of retail products in India like
high-speed broadband, dial-up Internet, Wi-FI, net telephony and
calling cards under the Tata Indicom brand name, and continues to be
one of the leading retail Internet players in India.
VSNL is listed on the major stock exchanges in India and also has
its ADRs listed on the New York Stock Exchange. (www.vsnl.in)
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. Such statements involve known and unknown
risks, uncertainties and other factors, 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, changes in
government policies or regulations of India and, in particular,
changes relating to the administration of VSNL's industry, and changes
in general 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.