Financial Daily from THE HINDU group of publications
Friday, Mar 26, 2004
Financial Daily from THE HINDU group of publications Friday, Mar 26, 2004 |
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Info-Tech
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Broadband VSNL-FLAG pact on addl bandwidth Our Bureau
New Delhi , March 25 ADDITIONAL international bandwidth capacity to the IT industry and international long-distance operators (ILDOs) to the tune of 2.65 gbps is expected to be available from the middle of next week. This would ease the existing supply constraint and could lead to a decline in price for these resources, according to the Telecom regulatory Authority of India (TRAI). This follows an agreement between Videsh Sanchar Nigam Ltd. (VSNL) and FLAG Telecom that was facilitated by the authority on Wednesday. TRAI noted that several users of international leased circuits, in particular, the IT industry and ILDOs, had approached it to express their concerns over inadequate availability of international bandwidth and the price at which such capacity was made available in India. As a facilitator, TRAI held intensive meetings with FLAG and VSNL and has helped the two parties to address their outstanding issues. It has been agreed that FLAG would submit the relevant schedules to VSNL indicating the basis for the availability of the additional capacity of 17 STM-1s (1 Synchronous Transport Module-1=155 mbps). It would also charge non-discriminatory prices to VSNL, providing it the lowest prices charged in the market to either Reliance from the previously sold capacity or at a lower price if such a price had been charged by FLAG to any international telecom entity in India prior to the time of actual purchase by VSNL. FLAG also agreed to provide VSNL with clarifications on the price data on which VSNL had raised certain queries. In addition, VSNL agreed to the allocation of 5 STM-1s that had been offered to it by FLAG out of the 17 STM-1s. FLAG agreed to provide the remaining STM-1s in a fair manner, i.e. they should not be predominantly provided to any single party.
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