VSNL’s cable deal gets the all-clear after US national security probe

13 Apr 2005

Indian telephone and internet service provider VSNL (Videsh Sanchar Nigam Limited) has been given conditional approval by the US Committee on Foreign Investment to complete the USD130 million purchase of Tyco Global Network. The deal, agreed last November, gives VSNL control of a 60,000km fibre-optic cable network spanning Asia, Europe and North America. A US-led inquiry was subsequently launched to probe potential issues of American national security presented by the acquisition, with some Republican senators arguing that the Tyco network represented a strategic asset and that VSNL’s actions were ‘hostile to US military and commercial interests’. The review found no significant evidence of national security breaches, and the deal was cleared after VSNL signed a security agreement allowing US law agencies to conduct surveillance of domestic calls made over the network.

India, United States, Tata Communications