VSNL lashes out at USTR; questions transparency of its 2006 report

Lashing out at the United States Trade Representative, Tatas-owned VSNL today expressed concern over the transparency of its 2006 report, especially the section dealing with telecom sector in India.

Lashing out at the United States Trade Representative (USTR), Tatas-owned VSNL today expressed concern over the transparency of its 2006 report, especially the section dealing with telecom sector in India.

‘‘Vsnl wishes to lodge an objection against non-transparent nature of the section 1,377 process. The 2006 report characterises the views of a narrow segment of us operators, yet provides no factual information supporting those views,’’ VSNL said in a letter to assistant USTR.

The 2006 report under Section 1,377 had accused VSNL of creating artificial shortage of bandwidth in the country and then inflating its prices.

Story continues below this ad

VSNL said that it had submitted data several times on issues raised by USTR both in written submissions and during face-to-face meetings, but the 2006 reports has failed to acknowledge the information.

‘‘Vsnl respectfully urges USTR to establish a more transparent section 1,377 process so that all interested parties may have a meaningful opportunity to submit data and have such submissions acknowledged and fully taken into account by USTR in the preparation of the report to Congress,’’ VSNL said in a strongly worded letter.

On US operators’ concern about ‘‘inflated prices’’ for international bandwidth in India, VSNL said: ‘‘the report does not provide any examples of recent price increases.

In fact, VSNL’s rates have declined by over 90 per cent since 2000, and active regulation by Indian regulator Trai of international bandwidth rates since last year should effectively eliminate any concerns about future price inflation.’’