Financial Daily from THE HINDU group of publications
Tuesday, Mar 16, 2004
Financial Daily from THE HINDU group of publications Tuesday, Mar 16, 2004 |
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Info-Tech
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Telecommunications VSNL agrees to allow some bandwidth on FLAG to Reliance Our Bureau
Mumbai , March 15 PROLONGED negotiations between Videsh Sanchar Nigam Ltd (VSNL) and Reliance-group owned FLAG Telecom have led to VSNL agreeing to allow connectivity to four STM-1 circuits to Reliance Infocomm. Negotiations are continuing, said sources in Reliance Infocomm which company's initial requirement was for 15 STM-1 circuits. There has been a tussle between the two groups over connectivity to bandwidth on the FLAG network, which is now owned by the Reliance group but whose landing station in India is owned by VSNL. Some weeks ago, Reliance Infocomm had complained to the Telecom Regulatory Authority of India that although it had entered into an agreement with FLAG for connectivity to several STM-1 circuits, VSNL was not granting it connectivity to the FLAG network. According VSNL, however, the `Access Agreement' between VSNL and FLAG made in January this year was for 15 STM-1s, and that if FLAG is entering into agreements with independent parties for more than this, it should have informed VSNL. A letter from VSNL to FLAG says that in this case, `reasonable terms and conditions' for the new capacities will have to be worked out between VSNL and FLAG. VSNL cannot provide 15 STM-1s to Reliance Infocomm because there are other parties to who were earlier in the queue, it has said.
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