Moves To Beef Up Internet Backbone Infrastructure

Videsh Sanchar Nigam Limited (VSNL) is expanding its Internet backbone infrastructure to accommodate greater internet traffic for the future. While the new Internet guidelines allow private sector players to be Internet service providers (ISPs), VSNL still controls the external gateway and is hence expanding and consolidating its infrastructure, VSNL chief B K Syngal said yesterday.

He said the company had recently increased its Internet gateway line bandwidth to 40 MB after starting off with a mere 64 KB.

The present infrastructure is capable of accommodating over two million subscribers. Syngal also presented a Rs 22.96 crore cheque as dividend for 1996-97 to the communications minister Beni Prasad Verma. The VSNL chief B K Syngal said, the dividend was on government held shares. The balance, out of the profit after tax of Rs. 504.74 crore, was being retained by VSNL.

 

During 1996-97, VSNLs total income increased by 18.16 per cent to Rs 5285.3 crore making it one of the top ten profit making enterprises in India.

The company is planning to invest over Rs 5000 crore over the next five years as part of its expansion plans. Expressing satisfaction at the companys performance for the year, Verma said VSNLs performance and position was worthy of a navaratna company.

He said, that with greater operational autonomy, the company will continue to grow a global giant in the near future.