The Tata-controlled Videsh Sanchar Nigam Limited has come under sharp criticism from American companies who have complained about the restrictive policies adopted by it on international bandwidth access.
"They (the US companies) complained about the discriminatory and monopolistic practices of VSNL and requested the Indian government to intervene to ensure VSNL makes available submarine cable capacity to other suppliers on a reasonable and non-discriminatory basis," United States Trade Representative said in its latest report.
US companies have recorded protests against restrictive policies by VSNL, where the government holds 26 per cent equity, on international submarine cable access and landing stations.
When contacted, VSNL officials in India said similar allegations had been made last year also and the same were found incorrect after scrutiny by appropriate authorities.
USTR's comments come close on the heels of the Telecom Regulatory Authority of India slashing international bandwidth prices by up to 70 per cent. (Trai's order was challenged in the Telecom Dispute Settlement and Appellate Tribunal).
Trai's move to cut prices would be beneficial only if the international submarine cable owners were allowed to get access in the country and make bandwidth available for various value-added services especially in the BPO segment.
The report, in its section on Foreign Trade Barriers, has also said that 'private carriers are concerned about the neutrality and fairness of government policy. The Indian government retains a significant ownership stake and interest in the financial health of the dominant telecommunication firms.'