VSNL buyback to be delayed

Replying to questions, he said VSNL was studying the market with regard to further reduction in internet tariffs. quot;It can happen,quot; he said when asked if VSNL would cut internet tariffs but hastened to add that no decision would be taken until the study was completed in the next four months. quot;Cuts will always be there. They will keep coming. Flexible tariff is a must, if you want to compete in a commercial environment,quot; he said.

VSNL8217;s internet capacity had grown more than two fold in the last one year and was expected to double this year. Kumar said VSNL would hold stake in theInternational Telecommunication Satellite Organisation Intelsat, a consortium of 143 countries, when the latter was privatised. Intelsat has already announced plans for privatisation.

quot;We will probably have a board seat with the support of other countries,quot; he said. VSNL8217;s investment in Intelsat had gone up to Rs 230 crore recently from Rs 200 crore, he added.

Earlier, making a presentation on quot;VSNL facilities for TV broadcasts,quot; Kumar said VSNL was eagerly waiting for direct to home DTH service opportunities.