Videsh Sanchar Nagam or VSNL as we know it, is finally getting a new name - Tata Communications.

The Tata's have finally managed to stamp their identity on VSNL. The board of VSNL has approved a proposal for a name change. VSNL will now seek shareholder approval and within the next 3 months to change its corporate identity to Tata Communications.

VSNL officials say the Tata brand name has wide international recognition and this will help VSNL get more international business. Sources say the Tata group faced stiff resistance from the government in the past whenever they wanted to change the name. The Tata group bought a 51% stake in VSNL from the government for Rs 2590 crore rupees in 2002.

In the last five years VSNL has transformed itself from being a pure international long distance carrier to complete communications solutions provider. Over 60% of its revenues come from overseas markets. VSNL is now increasing its focus retail customers by introducing calling cards and rolling out broadband for home users. This move may be one step towards the consolidation of Tata's communications businesses.

Tata's have been wanting to merge VSNL with Tata Tele Services and Tata Tele Maharahstra.