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BSNL, VSNL to discuss ILD rates

March 09, 2004 17:08 IST

Having received benchmarks for resettlement rates for carrying international calls, Bharat Sanchar Nigam Ltd will soon start negotiations with the Tata-controlled Videsh Sanchar Nigam Ltd to match the rates offered by other ILD operators like Data Access for routing its traffic.

"We have an agreement with VSNL for using their infrastructure for one year. For carrying ISD calls originating from our network, we will negotiate rates with VSNL. If they come down to same level as other operators then we will route traffic through them," V P Sinha, BSNL chairman and managing director, said.

He said that in case BSNL managed to get lower rates from VSNL or others, the benefits would be passed on to its subscribers.

VSNL has already bid lowest settlement rates for carrying BSNL's ISD traffic to Europe, SAARC nations, Australia, New Zealand, Saudi Arabia and Africa, but lost to Data Access for the United States, Canada and United Kingdom.

Reliance has bid lowest for Singapore, Malaysia and Thailand.

With these benchmarks in place, BSNL is planning to give an offer to VSNL to match the rates of Data Access and Reliance for carrying BSNL's entire ISD traffic.

BSNL, which plans to start its own ISD services from April 1 this year, has already signed an agreement with VSNL for using their infrastructure.

"I hope that VSNL will agree to match the rates, which are being offered to us by the other operators," Sinha said.

In case, VSNL did not agree to match the rates, BSNL would use the least possible rate route, Sinha pointed out.

He said BSNL would have a separate brand name for its own ILD services, although the branding had not yet been finalised.

Asked if BSNL had got the go ahead from the Department of Telecom for launching its ILD operations, Sinha said "we have got a letter from DoT allowing ILD operations." He, however, refused to divulge the details.


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