India Telecom

October 12, 2002
BSNL-VSNL dispute goes to TRAI

Rajendra Prabhu

NEW DELHI -- Privatized incumbent international telecom carrier Videsh Sanchar Nigam (VSNL) has taken its dispute with the Government owned Bharat Sanchar Nigam ltd. (BSNL) to the regulator, TRAI.

The dispute arose out of BSNL’s demand that VSNL give it interconnect charges that match the ones offered by the new ILD operators Bharti Telesonics and Data Access. This would have led to a serious drain on the VSNL revenues as it enjoyed a special relationship with BSNL when both were under Government control. By virtue of the terms of settlement between VSNL and Government the former were to get for two years continued support in carrying the BSNL originating traffic for international destinations.

Bharti Telesonics and Data Access the two new international carriers gave BSNL a fifty per cent increase in the portion of the call charges it could retain from an international call either originating or terminating on its networks. BSNL asked VSNL to match these offers if it were to retain the international part of the call carriage originating from BSNL’s network. VSNL moved the DoT and the company chairman Ratan Tata even spoke to Union IT and Communications Minister Pramod Mahajan in this regard. But with BSNL’s own revenues hit by low new national long distance charges, the Minister was in no position to concede the VSNL demand.

Refuting the charge that the TRAI was doing nothing in the on going interconnection disputes that all operators have with the incumbent basic services giant BSNL, sources close to the regulator said that all over the world the practice was to let the interconnect seeker and the giver to negotiate the terms by themselves. Only when they failed would the regulator step in.




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