ADC move delay good for VSNL: CLSA

A delay in the proposed reduction in access deficit charges (ADC) by Trai "augurs well" for Videsh Sanchar Nigam (VSNL), according to the Hong Kong-based broking firm CLSA.

"The proposed reduction in ADC continues to be delayed. This, coupled with a delay in the international long distance (ILD) plans of BSNL and MTNL, augurs well for VSNL's ILD business," CLSA said in its Asia-Pacific markets report.

The Internet gateway and service provider's "increasing focus on value-added services and data initiatives and expansion of domestic long distance (DLD) is driving improvement in its business mix," it added.

The Tata Indicom Enterprise Business Unit (TIEBU), which offers integrated voice and data services to 400-500 corporate clients, is a key growth engine for VSNL, it said.

The growing subscriber base of Tata Teleservices would also add to VSNL's growth, the broking firm said.