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Public sector companies Power Grid Corporation of India Limited and Videsh Sanchar Nigam Limited have signed a memorandum of understanding on future cooperation in telecommunications transmission.

As per the MoU PGCIL will set up an all-India optical fibre network by connecting major metros and other cities over its power transmission lines for voice and data communications.

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The network will also extended to neighbouring countries of the South Asian Association for Regional Cooperation.

Both these partners will pool resources and expertise for utilising optical fibre capacity in India and the South Asian region in the future.

This will help them both target emerging markets in the rapidly growing competitive environment.

PGCIL Chairman and Managing Director R P Singh has said the Power Grid Corporation views telecommunications as a strategic new area in its plan for the new millennium.

There are synergies between maintaining a network of power lines that can also be used for providing telecommunications infrastructure at a marginal cost, he explained.

VSNL Acting Chairman and Managing Director Amitabh Kumar said VSNL is witnessing tremendous growth in value-added services and networking requirements arising out of the growth of Internet, frame relay and multimedia services.

The new relationship will help VSNL explore opportunities in India and neighbouring countries to extend expertise in value-added services in the region.

Kumar and Singh signed the agreement to this effect.

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