VSNL Lowers Bandwidth Prices

by CXOtoday Staff    Aug 25, 2006

VSNL, a Tata Group company, has announced a significant reduction in prices for its international bandwidth products - International Private Leased Circuits (IPLC) and Internet Leased Lines (ILL).

In India, IPLC prices will be reduced by 25% and ILL prices by 40%, effective September 1, 2006.

The products are offered in India using VSNL’s global network spanning 2,00,000 route kilometers, with 275 PoPs, connecting 200 countries. They will be used for the BPO and KPO segment and also the academic and research segment.

Talking about the global market, N Srinath, Executive Director, VSNL said, “The segments that would witness growth are India, ME, Europe and North Africa. Considering globalization in the next few years and new proposed telecommunications, traffic for VSNL should be ready by early 2008.”

The global enterprise market for voice, carrier, enterprise data and global broadband will increase considering partnerships with global players including the Middle East by the end of 2007, and emerging technologies like biotechnology. Enterprise data products currently contribute 40% of VSNL’s revenues. Higher capacity cables in the year 2008 and beyond will lead to further growth in the market across the world.

The company is also intending to make partnership to build two new submarine cable systems, one between India and Europe and the other one intra-Asia. These multi-terabit capacity systems, incorporating state of the art technologies, would interconnect with VSNL’s existing global network that has over 20 terabits of capacity. The India - Europe cable would also provide connectivity to the Gulf region and the African continent, and supplement VSNL’s existing bandwidth capacity in several consortium cables in the region. The intra-Asia cable between Singapore, Hong Kong and Japan would enhance the link between VSNL’s Tata Indicom Cable (Chennai - Singapore) and TGN Pacific (Japan - USA).

Srinivas Addepalli, Head, Corporate Strategy, VSNL said, “This announcement would make more sense for CIOs of SMEs as higher capacity cables and planned investments would benefit them in the long run. The SME market is huge and it will contribute 50-60% of our revenues. We also see a growth in the managed services segment. With the acquisition of Primus, a Delhi-based ISP we see immense growth in India.”

The overall build cost of these two cable systems will be around $600 million.