VSNL, Teleglobe integrated as Tata Communications; new investments of $2 billion on the anvil

13 February 2008

The Tata Group has consolidated all its telecommunications and allied businesses under a new company, Tata Communications Ltd, that combines VSNL, VSNL International, Teleglobe, Tata Indicom Enterprise Business Unit (TIEBU) and Cipris brands worldwide.

The new company is headed by Subodh Bhargava as chairman and N Srinath, CEO and managing director.

Tata Communications will leverage its Tata Global Network (TGN), formerly Tyco Global networks, which VSNL had acquired in November 2004 for $130 million from Tyco International.

Tata Communications is in the process of completing additional submarine cables systems connecting emerging markets in Asia, Middle East and Africa to Europe to meet the demands of consumer broadband and enterprise customers over the next five to eight years.

The company plans to invest over $2 billion over the next three years to further fuel its global expansion plans.

For the Tata Group, the launch of Tata Communications represents the culmination of recent major international investments that expanded its global reach and ability to deliver IP-leveraged communications solutions.