Videsh Sanchar Nigam Limited has been advised by project consultant Frost & Sullivan to drop its direct-to-home (DTH) plans. In its preliminary report, Frost & Sullivan had pointed out that VSNL did not have the necessary expertise in terms of content, distribution and retailing of such services to foray into the DTH market. It must, therefore, completely drop the idea. The project consultant Frost & Sullivan are expected to submit its final report in 10 days.
With VSNL set to lose monopoly over international long distance telephony in April 2002, diversification into related areas was seen as vital for future growth of the company. According to the industry sources DTH project would required an investment of around Rs 1,000 crore while the break even was expected only after 10 years.