Himalayan News Service

Mumbai, July 1:

Videsh Sanchar Nigam Ltd (VSNL), the overseas telecom and Internet services provider, on Friday announced the acquisition of the US-based submarine cable firm Tyco Global Network (TGN). VSNL, a subsidiary of India’s diversified Tata Group, received the US Federal Communications Commission’s nod in May for the acquisition, rejecting arguments that the deal would threaten national security. The Tyco cable network spans 60,000 km and the continents of North America, Europe and Asia, said a VSNL statement. With the acquisition, VSNL has now become one of the world’s largest providers of submarine cable bandwidth. The company acquired the network for $130 million, not including the assumption of certain liabilities. “This acquisition is another positive step in our ongoing drive to offer global connectivity and efficient communications solutions for our customers,” said N Srinath, head (operations) of VSNL. “It also positions the Tata Group as a leading entity that can provide seamless telecommunications and IT services under a single umbrella for global enterprises,” he added.

Ongoing management responsibility of Tyco will be assigned to VSNL International, the division leading VSNL’s expansion into key global markets. VSNL International is rapidly growing its global footprint, with offices in Virginia, New Jersey, London, Paris, Madrid, Amsterdam, Frankfurt, Singapore and Tokyo. The agreement caps a nearly eight-month process that included approval from regulatory bodies in the US including Federal Bureau of Investigation, Homeland Security Department and Defence Department. Earlier, three US senators had described VSNL as a company “demonstrably hostile” to American military and commercial interests.