Internet and telecommunications service provider Videsh Sanchar Nigam Ltd has acquired assets and network of an international Internet Protocol Virutal Private Network provider for US, Europe and Far East on Monday for an undisclosed sum.

"The acquisition enhances VSNL's existing network capabilities and provides a ready VPN platform in the high traffic regions in these countries," VSNL director (operations) N Srinath said in a release in Mumbai on Tuesday.

Industry sources identified the acquired company as Gemplex Internet Inc, a Virginia-based business networking services provider, which was founded in 2000.

The existing VPN network will enable VSNL to offer voice and data services through the network, he added.

The network is ready to service clients in 15 countries, which would be done in a phased manner, he said, adding, the initial focus would be on eight countries, including US and Europe.

The Multi Protocol Lable Switchingnetwork, offers scalable and secure managed IP-VPN solutions that are available with a variety of access, connectivity and management options, he added.

The "ready for service" network would help VSNL offer services "immediately", and services like video on fibre to US and European destinations would also be considered.

VSNL would also sell and service domestic and global clients over this network, which is spread across the world, he said, adding the IP-VPN market in India is still in a "nascent stage", but would grow to touch around Rs 400 crore (Rs 4 billion) in the next three to four years.