The Hindu Business Line : BSNL mulls consortium with ILD operators

IN a bid to offer cheaper international long distance calls, Bharat Sanchar Nigam Ltd (BSNL) is looking at a number of options including forming a consortium with ILD operators and laying its own undersea cable network.

The State-owned company is also looking at buying out part of Videsh Sanchar Nigam Ltd's ILD infrastructure.

BSNL has set up an internal committee to examine these options.

Mr A.K. Sinha, Chairman and Managing Director, BSNL, told Business Line, "We plan to launch our own ILD services by June 2005. We are looking at a number of options to increase our efficiency and we are open to adopting any strategy that would bring down our costs.

"These options are being examined by a committee and are at various stages of being implemented."

BSNL is in talks with other ILD operators in the country for the consortium, whereby operators can ride on each other's network in different destinations.

Mr Sinha refused to elaborate on the nature of the consortium.

On the undersea cable, Mr Sinha said the company would begin with a cable between India and Sri Lanka, where it has begun ILD services on a microwave link.

"The cable could be a joint venture between BSNL and a Sri Lankan telecom company where both sides could put in the equal amounts of investments."

Mr Sinha said the company was looking to bring down cost of operations, which in turn will benefit consumers making ILD calls.

"We are also setting up our own ILD infrastructure. Our strategy could be a mix of all these options wherein we own part of the network while we use others' network wherever it is cheaper."

Currently, BSNL is riding on VSNL's ILD network through an arrangement that was worked out by the Government at the time of disinvesting stake in VSNL to the Tata group.

With the agreement between the two sides set to expire early next year, VSNL has demanded a status quo on the arrangement for some more time.

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