Videsh Sanchar Nigam Ltd (VSNL), formerly owned by the government and now in the Tata fold has been renamed as Tata Communications Ltd. The new name was approved at an extraordinary general meeting of the company held on Friday.
The company will, however, now be required to pay a fee for using the ‘Tata’ word in its name like other Tata Group companies. The branding fee is 0.25 per cent of the turnover or 5 per cent of PBT, whichever is less, company sources said.
Immense goodwill
Explaining the rationale for the change in name, Chairman Subodh Bhargava said the name VSNL reflected only one of its businesses that of international long distance. “It does not fully capture the wide range of communication services the company provides in India and worldwide.”
VSNL’s goal is to create a differentiated positioning as a global telecom player and also derive marketing and cost synergies with the Tata Group’s telecom and IT businesses. There is immense goodwill and brand awareness attached to the Tata mark globally due to the acquisitions made by various Tata Group companies, he said.