Mumbai: The $37 billion MCI WorldCom is open to the idea of acquiring an equity stake in Videsh Sanchar Nigam Ltd (VSNL), once the Union government puts the company on the road to privatisation. MCI WorldCom (Asia Pacific) president, Bill Barney told eFE that the company might explore possibilities to make strategic investments in the state-run VSNL, as and when the government offers a stake to strategic investors. "WorldCom and VSNL have been working together over the past few years in the Indian market. We are ready to inject funds in companies like Videsh Sanchar Nigam if we get `good opportunities'. However, a decision on this will mainly depend on the potential of the domestic telecom market," he added.The union government presently holds about 53 per cent equity stake in VSNL. In fact, the commission on divestment was planning to take a final decision to offload a part of the government stake in VSNL. The company is also planning to offer a stake in Videsh Seamless Nigam Ltd, a 100 per cent subsidiary being set up for its Internet operations. WorldCom, which provides advanced data, Internet and value-added services to customers, has been making strategic investments worldwide to strengthen its market presence.
India is one of the major telecom market for its investment strategies. "Our initial investments will be to maintain the customers here," Barney said here on Monday. Barney says that India could be a major hub for WorldCom's human resources requirements in the coming months. MCI WorldCom's newly set up Indian subsidiary based in New Delhi will have a manpower of 25 by this year-end, up from the present seven. Worldcom is also planning to set up a regional office in Mumbai.
WorldCom officials say that the company is likely to sign a couple of deals with domestic telecom companies in the next couple of months, to offer its services. Barney declined to comment on the expected revenues from the Indian market. "We are planning to pump huge funds into India as part of our Asia Pacific expansion plans," he said. The new telecom policy and initiatives by the Department of Telecommunications (DoT) have helped WorldCom to beef up its investments in India.
During the last fiscal, WorldCom had invested about $7 billion for its global expansion plans, including the Asia Pacific region. Through its UUNET, WorldCom has developed the most reliable and widely deployed Internet network, networking solutions and hosting solutions. The UUNET backbone supports speeds ranging from 28.8 Kbps to OC-12, and provides local access from more than 1,100 locations worldwide. It offers virtual private network (VPN), security, customer care, Web hosting and e-commerce services.
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