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NEWS
VSNL
to be a key component of TATA group's holistic telecom strategy
 The
TATA group's acquisition of a 25% stake in VSNL represents
a significant milestone in the Group's overall strategy of
becoming a truly world class end-to-end telecom services company.
The acquisition provides an ideal opportunity for the TATA
Group to seamlessly integrate its basic and cellular services
business with VSNL's presence in the international long distance
(ILD), ISP businesses and its imminent foray in the national
long distance (NLD) space.
With the TATA group's dominant presence in both infrastructure
and access services, it would have a unique business advantage
in terms of its ability to provide a full range of services
to its customers and speedily respond to a very dynamic market,
which is witnessing changes in customer behaviour, competition,
M&A opportunities and technology.
With the IT and Telecom sector in India poised for exponential
growth in the next 5-10 years, subscribers to such services
are expected to increase from 35 million in March 2001 to
about 85 million in 2006. In terms of revenues by 2006, telecom
services are expected to be a Rs. 66,000 crore market. With
the robust, flexible and holistic business strategy in place,
the TATA group is confident of emerging as a dominant player
in the telecom services space by capturing a sizeable portion
of this market. The company believes that in the not so distant
future, the contribution by the infocom sector to the TATA
Group's turnover and profits would be quite significant, thus
ensuring a high return on investment for all its stakeholders.
(Dr.G.C.Banik)
Chief General Manager (PR)
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