HAMILTON, Bermuda – October 17, 2006 - VSNL Singapore Pte Ltd. ("VSNL International"), the international arm of Videsh Sanchar Nigam Limited (NYSE: VSL) announces today the completion of a 10Gig upgrade to 21 locations of its global IP backbone throughout the United States, Europe and Canada. The upgraded network is based on the Cisco IP Next-Generation Network (IP NGN) architecture and features Cisco 12000 Series and 7600 Series routers. The three-month upgrade project also included a 50 percent transatlantic increase of capacity to support additional traffic between the US and Europe.

Vinod Kumar, President, VSNL International, comments, "Based on recent explosive traffic growth coupled with anticipated large traffic increases tied to our strategic initiatives, we decided to make a major investment in our IP backbone. The new network topology is designed to minimize latency and further increase network availability and security to ensure an unmatched service quality for our customers. VSNL International's high performance IP network, one of the largest in the world, is ready to support critical next generation services including MPLS, IPv6 and security services throughout the globe."

The VSNL International global IP network touts 570Gbps of high speed OC48/192 MPLS Backbone Capacity and 500G of customer connectivity throughout North America, Europe and Asia.  It reaches over land, sea and sky, in 5 continents and over 195 countries, carrying more then 300 petabits of traffic globally per month.

Kelly Ahuja, vice president and general manager of the core routing technology group at Cisco, says "VSNL International operates a certified Cisco IP Next Generation Network and has chosen to completely renew its infrastructure to be able to supply their customers with the latest, feature-rich, premium quality products and services available on the market. The upgrade positions VSNL to deliver current and future services faster, increase infrastructure efficiencies, and provide the high performance value-added network demanded by customers today."

VSNL International plans to further expand the IP network over the next three years through the addition of bandwidth in high growth regions and facilities in key emerging markets including Asia, Africa, the Middle East and Eastern Europe.

About VSNL
Videsh Sanchar Nigam Limited (NYSE: VSL), a company incorporated under the laws of India, is now a global communications services provider offering through its multiple subsidiaries  a comprehensive suite of communications solutions for carriers that need global reach and reduced total cost of ownership.

VSNL's Global Network spans 4 continents, comprises major ownership in 206,356km of terrestrial network fiber and sub-sea cables, and offers the greatest diversity to, and within, India.  With Trans-Atlantic and Trans-Pacific data transfer capacity of 1 trillion bits per second and a worldwide MPLS network, VSNL's footprint creates an unparalleled platform to deliver scalable connectivity to the key global business pathways.

VSNL has a global presence including operations in USA, Canada, UK, South Africa, Singapore, Sri Lanka and India making it the first Indian truly global telecommunications company. Its range of service offerings include wholesale voice, private leased circuits, IP, MPLS, VPN, Internet access, hosting, mobile signaling and several other IP services. The company is now poised to offer managed data services and deliver end-to-end telecommunications solutions to carriers and enterprises globally.

VSNL is a part of the Tata Group, a $22 billion global conglomerate comprising 93 operating companies. VSNL is listed on the major stock exchanges in India and also has its ADRs listed on the New York Stock Exchange. (www.vsnl.in).  VSNL's international division, VSNL International, is headquartered in Singapore with regional offices in the US, Europe, and India. Visit us at www.vsnlinternational.com.

Forward-looking and cautionary statements

Certain words and statements in this release concerning VSNL and VSNL International (collectively hereinafter "VSNL") and its prospects, and other statements relating to VSNL's expected financial position, business strategy, the future development of VSNL's operations and the general economy, are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements of VSNL, or industry results, to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding VSNL's present and future business strategies and the environment in which VSNL will operate in the future. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, changes in government policies or regulations and, in particular, changes relating to the administration of VSNL's industry, and changes in general economic, business and credit conditions. Additional factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements, many of which are not in VSNL's control, include, but are not limited to, those risk factors discussed in VSNL's various filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov.