The Hindu Business Line : VSNL to invest $ 40-m in under-sea cable system

VIDESH Sanchar Nigam Ltd will invest $ 40 million (over Rs 170 crore) in the SEA-ME-WE4 cable system between France and Singapore, with India as a landing point.

The company has also been appointed Network Administrator for the entire SEA-ME-WE4 network, a "critical and prestigious" responsibility, said Mr Subodh Bhargava, Chairman, VSNL, at the company's AGM here on Wednesday.

Referring to VSNL's differences with the Telecom Regulatory Authority of India (TRAI) over the regulator's tariff order on leased line services, Mr Bhargava said: "Any regulation or market competition-driven initiatives that reduce tariffs to a level that makes services unviable would have to be avoided. Or else, there is a risk of job losses and potential sickness of Indian enterprises, making them easy pick for foreign companies."

In segments such as the corporate data market, where competition is intense and customers well informed,

VSNL believes market-determined pricing should be preferred to regulatory interventions, he said.

"We share the vision of lower tariffs for customers. In fact, VSNL has led several tariff reductions in all our business segments," he said.

was unfair to compare with global rates for international leased lines, because globally several companies had been declared sick.

VSNL also announced the appointment of Mr P.V. Kalyanasundaram and Mr V.R.S. Sampath as independent directors on the company board with effect from September 14, 2005.

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