VSNL ready for talks on FLAG Tele

TATA-owned Videsh Sanchar Nigam Ltd VSNL has stated that it is willing to negotiate the controversial FLAG Telecom issue on terms and conditions that are mutually acceptable. This comes after the two parties have agreed to discuss the issue of bandwidth in an attempt to resolve it.

FLAG Telecom was acquired by Reliance Infocomm earlier this year giving Reliance access to huge cable systems and significant access to the international long distance ILD business. VSNL, however, holds exclusive rights to the landing station of FLAG and the entire debate has revolved around getting the required bandwidth released. Since VSNL holds the exclusive rights, it is in a position to determine how much of bandwidth should be released. Reliance Infocomm is said to have a huge requirement of 15 STM1s this translates into 155 mbps of data for its international long distance service and has charged VSNL with not making available adequate bandwidth.

The bandwidth will be also useful for a host of IT and IT-enabled Services ITES; businesses such as that of BPO would come under this. VSNL officials say that the usual level of capacity required will be given, while additional capacity will be made available through negotiations. Meanwhile, Reliance Infocomm has said that bandwidth prices can be reduced to 1 mn per STM from the current level of 5 mn per STM. In fact, Reliance has said that VSNL has been creating a scarcity of bandwidth.

FLAG Telecom officials, meanwhile, have shot off a letter to VSNL stating that it has not allowed FLAG access to providing bandwidtth. While meetings have taken place between the two parties, there is no clear indication when the issue will be resolved.