Comments on: Tyco Global Network Maybe For Sale, VSNL a buyer?

By: Roshan Bijlani

Roshan Bijlani — Tue, 03 May 2005 22:38:48 +0000

Hi Om,

By acquiring a US based company, what post merger integration issues in the areas of product management, contract biding and sales models do you see cropping up for Tata VSNL?

By: Om Malik

Om Malik — Tue, 03 May 2005 18:14:08 +0000

not sure when they will be able to recover their money but this is still a good deal for tata, since they got a really fast growing route between india and pac rim and usa. that’s where all the traffic is going to see maximum growth so i would not be surprised if they start making money much faster than others.

By: rahul kapur

rahul kapur — Tue, 03 May 2005 17:15:40 +0000

hi om,
How soon do you think Tata’s will be able to recover their investment in TGN ?
Do you rate it as a good deal for VSNL ?

By: ron banerjee

ron banerjee — Wed, 30 Nov -0001 00:00:00 +0000

Interesting analysis..VSNL has engaged Tyco to build a Madras(India)-Singapore undersea fiber cable. TGN currently has connectivity from Japan onward to US and Europe…if VSNL did this acquisition wouldn’t they have to further build a Singapore-Japan leg to complete the network?

On the other hand Reliance thru their ownership of FLAG already has fiber to Japan…so this may make more sense for them.

VSNL has already spent 100 million to build India-Singapore; add another 200 mil for TGN, plus another let’s say 100 mil for Singapore-Japan…pretty expensive.

By: Om

Om — Wed, 30 Nov -0001 00:00:00 +0000

hi ron … thanks for the email. i think by buying TGN VSNL will get a big chunk of pan-asian fiber, pan-pacific fiber and transatlantic cables. i guess they would not have to spend more on the cable buildout but mostly on maintainence of the networks.