Sri Lanka: VSNL Lanka gets gateway license

26 June 2003 – According to a report by The Hindu, VSNL Lanka Ltd., a wholly owned subsidiary of Videsh Sanchar Nigam Ltd. in Sri Lanka, has announced that it was granted an External Gateway Operator (EGO) license by the Telecom Regulatory Commission of Sri Lanka. 

The EGO license, which was acquired for a license fee of $50,000, will enable VSNL to offer international long distance (ILD) voice and data services. VSNL carries over three billion minutes of ILD traffic annually and is the largest service provider in India. The Sri Lankan ILD market generates approximately 400 million-minutes annually. 

The company said that it had received in-principle approval from the Board of Investments and the Telecommunications Regulatory Commission of Sri Lanka for the formation of a public limited company in that country.

 S. K. Gupta, Managing Director, VSNL, said, "VSNL has the infrastructure, the existing relationships with over 85 carriers across the globe and the experience of 70 years in international telephony, giving it a strong foundation and unmatched credentials in the business. By entering into new markets, we can leverage upon this expertise to grow in the emerging new market and optimise our investments in infrastructure. Our infrastructure, which today covers 12 gateways, 47 earth stations and five operational submarine cable systems, will help us extend our unmatched quality services offerings to Sri Lanka."

 The development follows the recent liberalisation of the Sri Lankan ILD market after the elimination of Sri Lanka Telecom's monopoly in the country. VSNL Lanka is VSNL's second international venture after United Telecom Ltd. (UTL), a joint venture with MTNL, Telecom Consultants India Ltd. (TCIL) and Nepal Ventures Private Ltd. UTL will soon be offering wireless local loop-based services in Nepal. UTL is also licensed to operate national and international long distance services.

Intelecon Research & Consultancy Ltd. 26/06/2003

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