VSNL International plans US$200 Million in...
VSNL INTERNATIONAL PLANS US$200 MILLION IN INTRA-ASIA CABLE
Singapore (BUSINESS WIRE) August 28, 2006 - VSNL Singapore Pte Ltd. ("VSNL International"), the international arm of Videsh Sanchar Nigam Limited (NYSE: VSL) announces today its plan to build a new multi-terabit submarine cable system linking Singapore, Hong Kong and Japan. This new intra-Asia cable will enable VSNL International to better serve its global customers doing business in and with the burgeoning Asia-Pacific markets.
This investment follows the recent announcement by VSNL to build a new system from India to Europe that will provide connectivity to the Gulf region and the African continent. The intra-Asia cable, when combined with the Tata Indicom Cable System (TIC) and the TGN-Pacific cable system (both of which are built with 8 fibre pairs capable of supporting 7+ Tbit/s of traffic), will complete VSNL International's multi-Terabit capability from India to Asia and onward to the US.
"With Asian bandwidth demand forecasted to grow at an average of 27% CAGR, VSNL International is taking steps to expand its capacity to serve customers in the booming intra-Asia market," comments Vinod Kumar, President VSNL International. "This new high-capacity cable system, soon to be one of the region's largest, combined with our existing C2C capacity and TGN-P capacity, will enable us to deliver high-performance bandwidth at the most cost-effective pricing and fulfil our strategy to become the market leader in bandwidth supply."
VSNL International will commence construction of the new intra-Asia cable by December 2006. The scheduled build time for the project is 12-14 months. The company is already in the process of finalizing design details, selecting suppliers and identifying additional partners for the project. Future potential landing stations for the cable include locations in China, Taiwan, the Philippines, Vietnam, Malaysia, and Guam.
Alan Mauldin, Research Director for TeleGeography Research comments, "TeleGeography's latest analysis suggests that growth rates in excess of 30% are very likely on these routes, the intra-Asian market alone will need to supply in excess of 400GB of new capacity every year."
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 sub-sea 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.
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