VSNL to enter info & communications tech

MUMBAI: Videsh Sanchar Nigam (VSNL) is yet again re-engineering its business model. In a bid to retain the cutting edge amid global competition, the Tata-owned firm is planning to turn from a pure-play telecom player to an information and communication technology (ICT) services provider.

And VSNL will walk hand-in-hand with Tata Consultancy Services (TCS) as the Nasdaq-listed telco re-orients itself to focus on IT along with telecom.

“IT and telecom are interwoven. Having IT capabilities and being able to bundle network with it, will help us distinguish ourselves from global competitors,” Srinivasa Addepalli, head of corporate strategy at VSNL, told ET. “

As corporations across the world use IT increasingly, the demand for data centres, connectivity, and web-based services will go through the roof. ICT is undergoing transformation and we want to position ourselves in the space to be a dominant player,” he said.

VSNL is working on several managed services offerings, including managed e-mail, IT security, disaster recovery and business continuity processes, besides others. Some of the services will be targeted at small and medium enterprises (SMEs).

The two Tata group companies will jointly offer system integration, system management, network management and other value added services like security and firewalls.

“In some cases, VSNL will front-end services while in some other, TCS can do it. The whole idea is to approach converged network IT solutions as a means of growing business. It is a multi-billion dollar opportunity,” Mr Addepalli said.

“We have a strong network and we will bring in-house IT capabilities. We won’t have too many dependencies in this model,” he added.

Citing instances, he said, managed e-mail services require IT implementation to ensure that e-mail messaging is in place round-the-clock. “This requires IT implementation as well as mail system upgrades, virus protection and VPN to connect to server.

We will take over from TCS for upgradation and protection to ensure connectivity. We will also provide call centre services, which could be charged on per usage basis,” Mr Addepalli said.

VSNL has, over the years, re-oriented its business model to keep pace with the changing telecom landscape. From a monopoly in the international long distance (ILD) telephony till ’04, VSNL today derives only around 60% of its revenues from ILD.

The Tata group later formed Tata Indicom Enterprise Business Unit (TIEBU) to ensure single brand interface for the customer. VSNL subsequently forayed into the retail broadband arena and is now expanding aggressively across the globe, especially South Africa.