VSNL has decided to demerge its retail internet business unit into a separate company. In 2006, VSNL acquired broadband service provider Direct Internet Limited (DIL) and DIL’s wholly owned subsidiary Primus Telecommunications India, which is now called VSNL Internet Services Limited (VISL). VSNL will transfer its retail business to VISL to simplify the holding structure and to allow for possible unlocking of value in future. According to the demerger plans, all retail broadband initiatives of VSNL Broadband Business, which operates an optical fibre cable network in Mumbai and Pune, will also be merged with the new entity. VSNL’s broadband business presently contributes 4 to 6 per cent to VSNL’s total revenues.
