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VSNL
moves ahead with NLD plans
Our eFE Bureau
Mumbai, Oct 30: Videsh Sanchar Nigam
Limited (VSNL) is at an advanced stage in its plans for providing
the national long distance (NLD) service. At an analyst meet
to discuss the company’s financial results for the second
quarter ended September 30, 2001, VSNL’s Chairman and Managing
Director, SK Gupta said the company will make a significant
advancement on its NLD plans by the end of the current financial
year.
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...Q2 net
up 6%
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Mumbai, Oct 30: Videsh Sanchar
Nigam Ltd (VSNL) has posted a 6.13 per cent rise in net
profit at Rs 368.5 crore for the second quarter ended
September 2001 compared to Rs 347.2 crore in the same
period period last fiscal.
The total income for the period under review was down
4.53 per cent to Rs 1744.2 crore from Rs 1827.1 crore
reported during the quarter ended September 2000, the
company informed the Bombay Stock Exchange. |
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— PTI
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Revenue from international telephony for
the second quarter ended September 30 has increased by 13
per cent as compared to the corresponding quarter for the
previous financial year. The revenue from value-added services
has increased by 19 per cent for the same period.
VSNL will make a total investment of Rs 2,000 crore for the
NLD segment over a seven year period. “We will make an investment
of around Rs 800 crore over the next two and a half years”
Mr Gupta said.
When questioned on the breakeven period for the company’s
NLD plans, he said this would depend on the existing contracts
with Bharat Sanchar Nigam Limited (BSNL).
“We have a revenue sharing arrangement with BSNL till March
31, 2002 and we will honour that commitment” explained Mr
Gupta. He added that there was no intention of taking any
initiative to reopen that arrangement.
“We are in the process of procuring the transmission switches
for NLD” said Mr Gupta. He was optimistic about VSNL’s prospects
for the Domestic Long Distance (DLD) market also. “The advantage
in the DLD market is that our own traffic is our assured market”
added Mr Gupta.
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