VSNL’s hub plans may change shape as `strategic partnership’

NEW DELHI, July 23: With not too many takers for its $ 500 mn plan to set up a regional telecom hub, VSNL is now planning to go in for a ...

NEW DELHI, July 23: With not too many takers for its $ 500 mn plan to set up a regional telecom hub, VSNL is now planning to go in for a `strategic alliance’ with a foreign telecom major. This `strategic partner’ would then help VSNL float or run any new venture, including the regional hub if, and when, it finally takes off. Few, however, expect the regional hub project — for routing international telecom traffic through India — itself to take off with the DoT limiting its viability by not allowing the setting up of telecom networks across the country. It is due to this, for example, that most bidders opted out of the project.

Highly placed sources in the Department of Telecommunications while refusing to substantiate the exact form of the new proposal said that the VSNL was well within its rights to go in for a `strategic partnership’ since the original Requests for Proposals (RFP) floated by the VSNL in October last year, had mentioned the fact that the proposals could be for a "strategic alliance" orfor forming a venture for investing in the regional hub.

The regional hub project itself dates back to 1995 when VSNL first approached the DoT to be allowed to form a joint venture with British Telecom to set up the regional hub making India the focal point for incoming and outgoing telephone calls from the region. However, despite several presentations to the DoT the project was put in the cold storage till last year when the VSNL was directed to get bids from other foreign companies for the project. As a result, VSNL floated the RFPs in October last year inviting other companies to bid for the project.

Story continues below this ad

Seven companies responded to VSNL’s RFPs and three were shortlisted. Cable and Wireless, Global one and British Telecom were the three companies which were shortlisted. The others who had bid for the project included Telstra, Hutchison, North American Gateways and Teleglobe.

Of the shortlisted companies, Global One – a consortium led by Sprint, France Telecom, MCI – and Cable and Wireless both requestedfor more time to submit a detailed proposal which was originally turned down by VSNL. These companies then opted out of the race for a JV partner for VSNL for the regional hub leaving only British Telecom in the fray.

VSNL has now extended the deadline for the detailed proposals to August 11. However, Global and Cable & Wireless have turned down the proposal a second time.

Experts, however, feel that VSNL’s move to go in for a strategic partner may clash with the Government’s decision to offload 10 million shares of VSNL to one strategic partner, if the GDR market is too depressed to enable it to get good money for its disinvestment. These experts point out that in such an event a strategic partnership for VSNL should be clubbed with VSNL’s strategic disinvestment.

H-1B $100,000 entry fee explained: Who pays, who’s exempt, and what’s still unclear?

Explained43 min ago

The White House's decision to impose a $100,000 entry fee on H-1B visa holders has sparked worry among Indian tech workers and students. While uncertainties remain about its implementation and exemptions, major tech companies have cautioned employees against traveling. The policy could lead to a shift towards other visa categories and potentially change the STEM immigration pipeline.

View all shorts

Live Blog