Vsnl, Tata Tele Merger Likely

Tata group chairman Ratan Tata today indicated the group could merge Videsh Sanchar Nigam Ltd (VSNL) with Tata Teleservices sometime in the future.

Tata added the group was working on various ways to exploit the synergies between its various telecommunications arms, which number almost half a dozen.

He was speaking at the annual general meeting of VSNL. Other Tata executives indicated that a merger, subject to clarity on regulatory issues, would create a fully integrated telecommunications company with services ranging from basic telephony to international and domestic long distance, as well as Internet access.

Earlier this year, the group invested over Rs 2,500 crore in acquiring a controlling stake in VSNL. Subsequently, a controversy erupted over VSNL's proposal to make a strategic investment in Tata Teleservices. VSNL