US COURT RULING CASTS A CLOUD ON VSNL's REVENUES
Article Abstract:
Videsh Sanchar Nigam Ltd's (VSNL) growth prospects and its $250 million Global Depository Rights (GDR) offer have been adversely affected by the recent US court ruling. The US court upheld a Federal Communications Commission's order, which restricted US carriers from paying more than the benchmark rates for handling calls into India. VSNL's 40 percent of the total revenue is from calls made between USA and India. In 1997- 98 VSNL had earned $430 million ( close to a third of its revenue) as settlement rates from US carriers. However VSNL maintains the ruling will not affect it as it has two-year contract with US carriers and also the ruling cannot be enforced on foreign carriers. (gs)(psr)
Comment:
Videsh Sanchar Nigam Ltd's (VSNL) growth prospects and its $250 million Global Depository Rights (GDR) offer have been adversely affected by the recent US court ruling.
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
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VSNL SHOPS FOR BANDWIDTH, TARGETS EAST ASIAN, AFRICAN MARKETS
Article Abstract:
Videsh Sanchar Nigam Ltd is acquiring a total capacity of 300 megabits per second on trans Atlantic carriers - TAT 14, AC1 and Gemini, with a total investment of $100 million. This additional capacity will enable the company to gain access the US and European markets, by establishing points of presence there. It has also identified West Asia, Africa and South East Asia as priority areas to develop new business. It has already invested $50 million to buy capacity in the SAFE cable, which will give it access to about 14 countries in West Asia and South Africa. (khr)
Comment:
Videsh Sanchar Nigam Ltd is acquiring a total capacity of 300 megabits per second on trans Atlantic carriers - TAT 14, AC1 and Gemini, with a total investment of $100 million.
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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