The Hindu Business Line : Reliance Info bags BSNL contract

INTERNATIONAL long distance (ILD) telephone tariffs are set to fall with Reliance Infocomm bagging the contract from Bharat Sanchar Nigam Ltd for carrying ILD traffic. Reliance has offered 83 paise per minute across five sectors, including the US and Canada.

Reliance edged out the Tata-managed Videsh Sanchar Nigam Ltd, which until now was carrying BSNL's entire ILD traffic across all the 11 international sectors. Though VSNL has managed to regain six sectors it stands to lose about 20-30 per cent of the revenue accruing from ILD business.

It has offered to carry ILD calls to sectors such as West Asia at 93 paise per minute.

The new rates will allow BSNL to rejig its ILD tariffs. An announcement to this effect is expected on May 17 on the occasion of the World Telecom Day. BSNL had invited bids for 11 ILD sectors from long distance operators.

The bids were opened on April 25 and the amount quoted was almost 50 per cent lower than the offer made by operators last year.

VSNL sources said that the net impact on its revenues would only be to the extent of 20 per cent, while BSNL officials said that about 40 per cent of the ILD traffic will now be routed through other companies.

India's ILD market size is around Rs 4,300 crore, of which BSNL's 42 million fixed line subscribers account for a significant share.

In the last year's bid, VSNL had initially lost out the crucial sectors of the US and the UK to Data Access but later got back these areas after it put a counter offer.

This year, BSNL had called for bids for carrying ILD calls from its subscribers to 11 sectors, which include South-East Asia, the US, the UK, Canada, West Asia, Europe, Australia, New Zealand, Africa, Saudi Arabia and SAARC.

Last year, VSNL had bagged the contract for all the 11 sectors after thwarting the challenge from Data Access, which had quoted rock bottom settlement price of Rs 1.69 per minute.

Last year, BSNL had invited bids for both the carriage and settlement. This year, however, the company had invited bids only for the carriage part in some of the sectors.

That, because BSNL has worked out settlement rates on its own with international carriers in some sectors.

BSNL, meanwhile, is also in the process of setting up its own ILD network.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Reliance Info bags BSNL contract

Compulsory auditing for charitable educational bodies, hospitals likely — Taxation laws amendment Bill introduced in LS

Facsimile editions of foreign newspapers may be allowed: GoM

Excise dues: Taxmen may get powers to attach property

Textile firms going in for vertical integration

Govt looking at options for FDI in retail

Bank mergers: Approval from two-third board members must