Teleglobe Acquired by Indian Telecom Company VSNL

Indian telecom giant Videsh Sanchar Nigam Ltd. (VSNL), has completed its acquisition of Teleglobe International Holdings Ltd.

The new combined company will own and operate one of the world’s largest international mobile, data and voice networks with coverage to more than 240 countries and territories. It plans to offer wholesale customers voice, data and mobile, and managed services worldwide; the foundation of the new company’s capability will be the integration of VSNL’s pan-India presence and cable diversity to and from India, along with a global backbone capacity and Teleglobe’s network. Existing wholesale customers will not see a service disruption.

“The Teleglobe acquisition is a critical step toward our vision to become a global industry leader providing customers with converged communications solutions,” said N. Srinath, executive director at VSNL. “Our focus in recent years has been to expand our presence into new markets and provide a complete portfolio of solutions to our global client base. We are now a key player in the international wholesale market, supporting more than 1,400 customers. Our complementary networks and capabilities will further drive mobile, data and voice innovation for our enterprise customers.”

The combined company will operate under the name of VSNL International, and Teleglobe will continue to serve as the product brand for the voice, mobile and IP transit wholesale services. VSNL International will remain the product brand for the company’s wholesale IPL and Ethernet offerings, as well as the full enterprise portfolio.

Teleglobe was acquired for about $239 million. At Teleglobe’s existing revenue levels, the acquisition could increase VSNL’s annual revenue by up to 200 percent in 2006-07.

Shares of Teleglobe common stock, which prior to the merger traded on the Nasdaq under the symbol “TLGB,” were delisted from trading as of the close of the market yesterday.

Videsh Sanchar Nigam Ltd. (VSNL)

VSNL International

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