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Tata plans to merge its Internet service with VSNL

08-June-2002
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Tata plans to merge its Internet service with VSNL

The Tata group is planning to merge Tata Internet, its Internet service company, into the newly acquired Videsh Sanchar Nigam Ltd. (VSNL). The group is looking into the issues involved in synergising operations of the two companies.

The Tatas have already set up a team of executives to suggest measures to integrate the operations. The team is to submit its report shortly.

The group was earlier considering merging Tata Internet into Tata Teleservices to bring the Tatas'' voice and data communication services under one roof.

However, there has been a change of plans with the recent acquisition of VSNL. The Tata group now wants to leverage the benefit of having the country''s largest Internet service providing company.

The team is expected to work out a plan to clean up the often conflicting hardware and software in the two companies before work begins on the integration.

The Tata group had invested Rs 140 crore in Tata Internet. The company offers Internet access to retail and corporate clients, besides running public access systems. It also offers networking and data-centre based services to corporate houses.

Source: Business Standard

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