VSNL to roll out retail broadband in 30 cities

Videsh Sanchar Nigam Ltd (VSNL) will soon roll out retail broadband on a commercial basis in 30 cities during the next 1 to 2 years. The firm will initially offer the service in Ahmedabad, Hyderabad, Pune and Bangalore. It has already test marketed the services in Mumbai.

Amitabh Khanna, chief financial officer, VSNL, said, "We are expanding our broadband operations to the retail segment -- including homes -- in 30 cities."

Khanna was speaking to mediapersons on the sidelines of VSNL's annual general meeting here today. He said the Tata group has allocated a significant percentage of its total investment for broadband and national long distance. Ratan Tata, chairman of the Tata group, said VSNL expects revenues in the range of Rs 300-350 crore from broadband .

"It will be a major thrust area for the telecom carrier," Tata said, adding the company will look at providing best broadband connectivity at competitive rates in the domestic and overseas markets.

Tata also told shareholders that VSNL had not taken a decision to sell its 2.6 per cent in New Skies Satellite, even though a proposal has been placed with the company's board of directors.

"We had bought the stake for around Rs 56 crore and we expect to get Rs 120 crore in case we decide to sell it," he said.

In the segment, VSNL will also focus on large corporate customers and would even provide last-mile connectivity to them.

Khanna said that the company has recovered around $22 -25 million in dues from foreign carriers via overseas traffic in the first quarter of 2004-05.

In the second quarter the company expects $8-10 million to get the remaining $80-100 million dues. We are pursuing with the international foreign carriers to get the money, Khanna added.

On Tyco Global Networks, Khanna said that the company was looking at the US-based company but declined to give further details.

Tatas and Reliance Infocomm are among the four companies shortlisted from eight that had submitted the initial price band indications for Tyco, which is the undersea cable business of US-based Tyco International.