VSNL buys DishnetDSL for Rs270 cr

CIOL Bureau
New Update

NEW DELHI: International gateway provider and India’s largest ISP, Videsh Sanchar Nigam Ltd (VSNL) is acquiring the narrow band and broadband businesses of Dishnet's ISP division for Rs270 crore. VSNL had proposed the decision to acquire Dishnet’s ISP division to its board earlier this year. In a press statement, VSNL has announced that this step would help the company move ahead on strengthening and consolidating its presence in the Internet and broadband space.

The transaction includes the acquisition of all Internet assets, employees and customers of Dishnet's ISP division. The transaction is also subject to fulfillment of certain conditions precedent and some legal formalities, which are expected to be completed soon before the transaction closes. VSNL has entered into the transaction after a merchant banker evaluated the assets and liabilities of the business.

The acquisition of Dishnet gives VSNL access to a sizable number of customers in both dial-up and broadband services and presence across 38 cities and 200 towns. It also gives VSNL access to the vast base of over 600 owned and franchised cyber cafes of Dishnet. Further, VSNL would now cover dial-up services in 20 additional locations over and above VSNL's existing 30 locations of operation. The acquisition also comprises of broadband assets having capacity to serve more than 50,000 customers in key cities in the country.

VSNL director (operations) N Srinath, has informed that the acquisition of DishnetDSL's Internet business will strategically help VSNL consolidate its presence in the Internet space under the 'Tata Indicom' banner by enlarging its geographical footprint and giving it a head start in the broadband Internet space.

VSNL presently enjoys a subscriber base of over 650,000 dial-up ISP subscribers and holds leadership position in the corporate ISP space. VSNL is also planning a significant entry into the broadband Internet space. The company recently launched 'Tata Indicom Total Internet'- an integrated solution comprising multiple Internet services i.e. Internet access, net telephony and value added mailing services.

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