VSNL to Upgrade Trans-Pacific Submarine Cable Network to One Terabit Capacity to Serve Increased Customer Demand

VSNL Singapore Pte Ltd. ("VSNL International"), the
international arm of Videsh Sanchar Nigam Limited (NYSE:VSL)
announces today the upgrade of its high capacity Trans-Pacific
submarine cable network to a 1 terabit capacity to serve increased
customer demand between Asia and the US. The Trans-Pacific Network
(TGN-P) connects several key US West Coast Internet and carrier
exchanges directly to Japan and onward to other important Asian
destinations through multiple regional sub-sea cable interconnections.
   Acquired by VSNL in 2005, as part of the Tyco Global Network
(TGN), the TGN-P is designed as a ring with two 12,000km submarine
cables. Each cable carries eight fiber pairs with each fiber capable
of carrying up to ninety-six 10 Gbit wavelengths, delivering a total
network capacity of 7+ Tbit/s. Currently, 640Gbit/s of capacity is
activated on the TGN-P system and is used by VSNL International
customers to carry live voice and data traffic.
   Vinod Kumar, President, VSNL International, comments, "In response
to significant growth in bandwidth demand over the past 12 months,
coupled with strong forecasts from independent analysts, VSNL
International has decided to invest in this upgrade to better serve
our customers and enable them to choose us as a single source provider
for all their bandwidth requirements. Our customers will benefit from
easily scalable bandwidth and unparalleled connectivity on the largest
Trans-Pacific system available today."
   The TGN-P will be upgraded to a lit capacity of almost 1000 GBit/s
and VSNL International expects the first phase of this upgrade to be
implemented by the end of 2006.

   About VSNL

   Videsh Sanchar Nigam Limited (NYSE:VSL), a company incorporated
under the laws of India, is now a global communications services
provider offering through its multiple subsidiaries a comprehensive
suite of communications solutions for carriers that need global reach
and reduced total cost of ownership.
   VSNL's Global Network spans 4 continents, comprises major
ownership in 206,356km of terrestrial network fiber and subsea cables,
and offers the greatest diversity to, and within, India. With
Trans-Atlantic and Trans-Pacific data transfer capacity of 1 trillion
bits per second and a worldwide MPLS network, VSNL's footprint creates
an unparalleled platform to deliver scalable connectivity to the key
global business pathways.
   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 is a part of the Tata Group, a $22 billion global
conglomerate comprising 93 operating companies. 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). VSNL's international division,
VSNL International, is headquartered in Singapore with regional
offices in the US, Europe, and India. Visit us at
www.vsnlinternational.com.

   Forward-looking and cautionary statements

   Certain words and statements in this release concerning VSNL and
VSNL International (collectively hereinafter "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, 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 and, in particular,
changes relating to the administration of VSNL's industry, and changes
in general economic, business and credit conditions. 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.