Exhibit - 5
(VSNL LOGO)
Satish Ranade
Company Secretary & VP (Legal)
HQ/CS/CL.24B/
25 April 2004
Sir,
Sub: Press Release
Please find sent herewith a Press Release captioned "VSNL signs landmark
deal with Bharti for 100,000 fibre kms National Long Distance Backbone" which is
being issued today.
Thanking you,
Yours faithfully,
For Videsh Sanchar Nigam Limited
Satish Ranade
CS & VP(L)
To:
1) Security Code 23624, The Stock Exchange, Mumbai. Fax No.(22) 22722061,
22721072/22722037
2) The Secretary, Madras Stock Exchange Limited. Fax No.(44) 524 48 97.
3) Security Code 32149, The Secretary, Calcutta Stock Exchange Assn. Ltd, Fax
No.(33)2202514/2283724.
4) Security Code 5251, The Asst. Manager (Listing), National Stock Exchange of
India Limited. Fax Nos.: (22) 26598237/38.
5) National Securities Depository Ltd. Fax Nos. : 2497 29 93.
6) Mr. Vijay Bhojwani, The Bank of New York. Fax No.2204 49 42.
7) Sharepro Services. Fax No. 2837 5646
8) Marc H. Iyeki,Director, New York Stock Exchange, Fax No: (212) 656-5071/72/
Madhu Kannan, Managing Director, New York Stock Exchange, Fax No: (212)
265-2016
9) Mr. Hitendra Patil, Vice President (Operations) Central Depository Services
(India) Limited. Fax : 2267 3199.
10) Mr. Pavithra Kumar, for SEC filing requirements, Fax 1195
(VSNL LOGO)
PRESS RELEASE
VSNL SIGNS LANDMARK DEAL WITH BHARTI FOR 100,000 FIBRE KMS NATIONAL LONG
DISTANCE BACKBONE
o To provide robust Gigabit connectivity to VSNL's Enterprise and
Broadband subscribers
o VSNL's NLD backbone to cover over 200 LDCA's
MUMBAI, APRIL 25, 2004: Videsh Sanchar Nigam Limited (VSNL) today achieved a
significant milestone in its National Long Distance plans by signing a Right to
Use agreement for 23,000 route kms or 100,000 fibre kms capacity on an existing
advanced fibre optic domestic long distance backbone. The capacity agreement
between VSNL and Bharti marks the first of its kind Co-opetitive accord between
two leading telecom service providers in India to optimize capacities in the NLD
segment.
"THIS AGREEMENT. ALONGWITH OUR OWN SUBMARINE CABLE, WILL ENSURE THAT OUR
ENTERPRISE AND BROADBAND SUBSCRIBERS GET END TO END CONNECTIVITY ON OUR ROBUST
GIGABIT NETWORK." said Mr. S.K. Gupta, Managing Director - VSNL. "ONE OF THE KEY
CHALLENGES THE TELECOM INDUSTRY IN INDIA HAS FACED IS OVERCAPACITY. WE ARE GLAD
THAT THIS AGREEMENT BETWEEN VSNL AND BHARTI IS A PROGRESSIVE STEP, AND WILL
PROMOTE THE SPIRIT OF CO-OPETITION IN THE INDIAN TELECOM INDUSTRY", HE ADDED.
The National Long Distance backbone will further enhance VSNL's leadership
position in the corporate business segment and Internet services, and give an
immediate boost to its retail broadband plans. VSNL's wholesale business
segment, primarily catering to voice solutions, will also benefit from the
augmented NLD backbone. The domestic backbone will offer considerable cost
optimization benefits, as all the three business segments - Wholesale, Corporate
and Retail - consume significant NLD bandwidth.
With the augmented capacity, VSNL will possess a robust and highly redundant
nationwide backbone of over 25,000 route kms connecting the entire country.
Prior to the agreement for this capacity, VSNL had a DWDM network spanning over
6,000 route kms. The 25,000 route kms - plus NLD backbone will cover over 200
Long Distance Calling Areas (LDCAs) and keep VSNL much ahead of its NLD rollout
obligations.
- --------------------------------------------------------------------------------
ABOUT VSNL
Videsh Sanchar Nigam Limited, first telecom service provider in the world to get
the prestigious TL 9000 certification, is India's leading provider of
International Telecommunications and Internet Services. As the country's leader
in International Long Distance services and with a strong pan-India National
Long Distance presence, VSNL is the leader in the Corporate Data Market in the
country today with a strong service offering covering IPLCs, ILLs, Frame relay,
ATM and MPLS based IP-VPN services. With established relations with over 80
carriers across the globe, VSNL today has a strong infrastructure base that
covers multiple gateways, earth stations and submarine cable systems.
Tata-managed VSNL is now rapidly growing its retail and corporate presence under
the Tata Indicom brand through its products like high speed broadband, dial-up
Internet, net telephony and calling cards, and has an internet subscriber base
of over 8,00,000 subscribers. The Company also proposes to consolidate its
presence in the Internet space by increasing its impetus on the Retail Broadband
business. VSNL also offers a host of other valued added services that include
Television/Video uplinking, Program transmission services, Frame relay
services and Inmarsat services.
VSNL is in the process of expanding its global presence and is setting up
operations in Sri Lanka, Singapore, Europe and the United States of America. Its
international connectivity capabilities, both undersea as well as satellite,
offer the greatest diversity in India, which is critical for all customer
segments, encompassing wholesale, corporate and retail. The company is
augmenting its international connectivity by setting up a 3175 km undersea cable
between Chennai and Singapore with a designed capacity of 5.12 tera bits. VSNL
is listed across all the major stock exchanges in India and also has its ADRs
listed on the New York Stock Exchange. (www.vsnl.com)
FORWARD-LOOKING AND CAUTIONARY STATEMENTS:
Certain words and statements in this release concerning VSNL and its prospects,
and other statements relating to VSNL's expected financial position, business
strategy, the future development of VSNL's operations and the general economy in
India, are forward-looking statements. Such statements involve known and unknown
risks, uncertainties and other factors, which may cause actual results,
performance or achievements of VSNL, or industry results, to differ materially
from those expressed or implied by such forward-looking statements. Such
forward-looking statements are based on numerous assumptions regarding VSNL's
present and future business strategies and the environment in which VSNL will
operate in the future. The important factors that could cause actual results,
performance or achievements to differ materially from such forward-looking
statements include, among others, changes in government policies or regulations
of India and, in particular, changes relating to the administration of VSNL's
industry, and
changes in general economic, business and credit conditions in India. Additional
factors that could cause actual results, performance or achievements to differ
materially from such forward-looking statements, many of which are not in VSNL's
control, include, but are not limited to, those risk factors discussed in VSNL's
various filings with the United States Securities and Exchange Commission. These
filings are available at www.sec.gov. These forward-looking statements speak
only as of the date of this release. VSNL expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any forward-looking
statement contained herein to reflect any change in VSNL's expectations with
regard thereto or any change in events, conditions or circumstances on which any
such statement is based.
- --------------------------------------------------------------------------------
FOR FURTHER DETAILS CONTACT:
Dr. G. C. Banik, Chief General Manager (PR), Ms. Shefali Jhaveri/Meenu Sood
Videsh Sanchar Nigam Limited, Vaishnavi Corporate Communications
Tel: 91-22-5639 5153 Tel: 91-22-56568787