VSNL, MTNL join hands to deliver telecom solutions globally

BANGALORE: Videsh Sanchar Nigam (VSNL) and Mahanagar Telephone Nigam (MTNL) would jointly explore business opportunities globally, VSNL chairman and managing director

S.K. Gupta said at the company's 13th annual general meeting.

As per the memorandum of understanding (MoU), the two companies will pool their resources, including expertise, to deliver telecom solutions globally, which would help them emerge as market leaders in an increasingly competitive world.

Liberalization in the telecom sector will help VSNL increase revenue and enhance its product portfolio, Gupta said. The company will play by the new rules, which reflect a transition from high cost telephone-dominated to low-cost information-based services. According to Mr. Gupta, with the new telecom policy in place, VSNL will benefit from more outgoing and incoming telephone calls. The company has already seen an increase in volume as a result of lower tariffs. VSNL is also attempting to make a foray into domestic long distance telephony once it is thrown open to competition next year.

Meanwhile, VSNL announced a record profit of Rs 1,325 crore for 1998-99, registering an increase of 36.89 per cent over Rs 968 crore last year. It is for the first time that the net profit has crossed the Rs 1,000 crore-mark, a VSNL release said. Its revenue grew to Rs 7,175.57 crore, a growth of 11.49 per cent compared to previous year's Rs 6,436.13 crore. VSNL's revenue includes a forex component of Rs 4,737.62 crore.