India’s largest international long-distance and internet services telecoms provider Videsh Sanchar Nigam Ltd (VSNL) said its profits for the three months to the end of June plummeted by 75% as the effects of the loss of its monopoly bit hard into its bottom line. VSNL posted net income of INR658 million in the first quarter, down from INR2.61 billion for the same period in 2002, on markedly reduced revenues of INR9.26 billion (INR14.26 billion). The operator has been under ever increasing pressure since losing its exclusivity on the provision of international services on 1 April 2002. Its international tariffs have been slashed by up to 60% to combat a wave of new carriers offering low-cost alternative services. On a brighter note, the company reported that turnover at its leased channel business was up 12.45% and that it had introduced a raft of new advanced products such as IP-VPN, ATM and remote access dial services to bolster its corporate services portfolio. In addition it has created a new subsidiary in Delaware, USA to provide IP-VPN solutions and established VSNL Lanka Ltd to tap into business opportunities in Sri Lanka.