VSNL and Teleglobe Merger

The VSNL and Teleglobe merger took place in 2006 in a deal worth 239 million US dollars. The acquisition of Teleglobe made VSNL the leader in voice services in the world. Several benefits related to infrastructure, operations and services resulted from this merger. VSNL gained higher scalability and better network connectivity.

The VSNL and Teleglobe merger in 2006 was one of the biggest deals in the international communications industry. VSNL (Videsh Sanchar Nigam Limited) acquired Teleglobe International Holdings Ltd. in a deal worth 239 million US dollars. VSNL's annual revenue was expected to shoot up by 200% as a result of this acquisition.

The new company formed out of the VSNL and Teleglobe merger had broad based ownership of data, voice and mobile networks spanning 240 countries. The important aspects of the emerging company by the merger of VSNL and Teleglobe are -

• Global representation in 35+ countries.
• Over 650 enterprise customers and 1400 enterprise customers globally.
• A total of about 206,356 km of cable inclusive of both land and under-sea cable.
• Ownership of more than 100 cable systems.
• Role of network administrator in SEA-ME-WE4 (South East Asia-Middle East -Western Europe).
• 30 earth stations ensuring access to 5 geo-stationary satellites.
• The emerging company connected the Indian telecom network with 240 international territories.
• It also provided connection to 400 cellular service operators across the globe.
• Provided Global data service to India.
• Engaged in delivering content data.

The acquisition of Teleglobe made VSNL the largest voice service provider globally. This added further impetus to VSNL's emergence as a global telecommunications company with operations in India, Sri-Lanka, Singapore, South Africa, United Kingdom, Canada and the United States of America. The biggest benefits to Videsh Sanchar Nigam Limited from this merger were in terms of higher scalability and better network services to its customers. Teleglobe's strong global network provided VSNL the platform for further expansion of its services.