Financial Daily from THE HINDU group of publications
Thursday, Aug 04, 2005
Financial Daily from THE HINDU group of publications Thursday, Aug 04, 2005 |
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Info-Tech
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Telecommunications Government - Security Global bandwidth pricing — VSNL refutes US charges Our Bureau
New Delhi , Aug. 3 VIDESH Sanchar Nigam Ltd (VSNL) has refuted allegations of high international bandwidth pricingmade by the United States Trade Representative (USTR) saying that the data submitted by the US agency were incorrect . In a communication to the Telecom Regulatory Authority of India (TRAI), VSNL said that it was not appropriate for any foreign governmental agency to interfere with the lawful working in another country. The USTR had earlier written to TRAI seeking its intervention on alleged monopolistic practices by VSNL. With the acquisition of Tyco Global Network and TeleGlobe's cable network, VSNL is the third largest undersea cable operator and this has raised some security concerns in the US. Responding to the USTR's allegations, VSNL said in a letter to TRAI, "the underlying data were incomplete and flawed, in part because they were based upon list rather than transaction prices and did not take into account the relevant cost differences". VSNL said that it only controls 51 per cent of international bandwidth capacity in India, and only 8 per cent of capacity on the Reliance-owned FLAG Europe Asia (FEA) cable system. The letter signed by VSNL Company Secretary, Mr Satish Ranade, states, "VSNL disagrees with USTR's assertion that end-to-end bandwidth pricing is above market levels on the US-India route. USTR refers to a single submission to FCC in which a small US operator complained that prices were too high. No other US operator voiced a similar complaint, and the FCC did not express any opinion on the validity of this allegation".
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