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VSNL slashes bandwidth prices, announces two submarine cable systemsnews
24 August 2006

Mumbai: Videsh Sanchar Nigam Ltd (VSNL) has announced a 25 to 40 per cent reduction in prices for its international bandwidth products - international private leased circuits (IPLC) and internet leased lines (ILL) effective September 1.

While VSNL has reduced its IPLC prices in India by up to 25 per cent, it has reduced its ILL tariffs by up to 40 per cent.

IPLCs are point-to-point international private circuits, mainly used by large Indian corporates and multinationals to connect to their regional and global locations. Internet Leased Lines are dedicated high-speed connections to access the internet, used by enterprises and small/medium ISPs.

These products are offered in India using the company's global network that spans over 200,000-route km, with 275 PoPs, connecting 200 countries.

Tata group's initiative is in line with the globalisation of India Inc. Demand for international connectivity has been rapidly growing with several Indian companies investing overseas and India emerging as a favourite destination for FDI and FII inflows.

International connectivity is also an important driver for the growth of the fast growing IT, BPO and KPO sectors. The reduction in banwidth prices is expected to generate demand from new customer segments like SMEs, smaller ISPs and academic institutions.

VSNL meanwhile, is partnering with leading carriers overseas to build two new submarine cable systems - one between India and Europe and the other intra-Asia. These multi-terabit capacity systems, incorporating state-of-the-art technologies, would interconnect with the company''s existing global network that has over 20 terabits capacity.

The India-Europe cable would also provide connectivity to the Gulf region and the African continent, and supplement the company''s existing bandwidth capacity in several regions of the cable consortium.

The intra-Asia cable between Singapore, Hong Kong and Japan would enhance the link between the company's Tata Indicom cable (Chennai-Singapore) and TGN Pacific (Japan-USA). The overall cost of constructing these two cable systems is expected to be in the region of $600 million.

"VSNL has always taken the lead in growing the internet and international bandwidth market in India. We have invested over Rs2,500 crore in expanding our global presence and connectivity in the last two years. We have regularly passed on the benefits of improved cost efficiencies and service quality to our customers," said N Srinath, executive director of the company. "The new cables would enhance VSNL's global network in two of the fastest growing regions in the world," he added.

With the acquisition of Tyco Global Network (TGN) last year, VSNL now owns one of the world''s largest undersea cable bandwidth. The company is also now the world's largest international wholesale voice carrier (with about 17 billion minutes of traffic annually) post the acquisition of Teleglobe in February 2006.

A recent study by Boston Consulting Group has identified the company as an emerging global challenger, one of the top 100 companies from rapidly developing economies that are going global and changing the world.

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VSNL slashes bandwidth prices, announces two submarine cable systems