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VSNL reaches pact with FLAG on access charges

Our Bureau

Mumbai , July 5

AN additional 2.65 Gbits of international telecommunication bandwidth will become available for sale to and from India with Videsh Sanchar Nigam Ltd (VSNL) reducing its landing station access charges per synchronous transport module-1 (STM-1).

These charges will be lowered by 25 per cent due to the settlement of differences with FLAG Telecom (now a Reliance Infocomm-group company).

FLAG Telecom and VSNL on Monday announced that they have agreed on the sale of 17 STM-1s of capacity on the FLAG Europe Asia (FEA) cable system to and from India.

Under the terms of this agreement, arrived at a month ago, 6 STM-1 westerward, and 11 STM-1s eastward will become available immediately in the marketplace, along with additional capacity that may become available because of "grooming/changes" in the existing contracts between the two companies.

This would be within the design capacity (10Gbits) of the FEA cable system, said a joint news release.

With the signing of this Agreement FLAG Telecom and VSNL have settled the differences amicably on the issue of access for existing capacity available under their agreement for sale on FEA Cable System, said the release.

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