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DoT opposes VSNL's hubbing plans

VSNL, the overseas communication corporation of India, currently enjoys monopoly over the commercial Internet access provision business, besides similar powers in other areas of telecommunications.

DoT has now opposed VSNL's Rs 30 billion venture with British Telecom for a regional hub in which BT was prepared to invest Rs 15 billion.

DoT is questioning the VSNL's approved plan to open new international gateways. Objecting to the VSNL's plan to open international gateways from six different locations, apart from the four metros including international call areas like Jalandhar, DoT, in a note to the government, said that the business of opening gateways could be done by itself.

DoT's objections could prevent VSNL from operating international traffic in the manner it would like to. This would also ensure that VSNL, despite its newly-acquired independent status, would actually continue to operate on the dictates of Sanchar Bhawan officialdom.

The government is planning moves to divest VSNL of its monopoly status in international telephone traffic, despite the public commitment the government gave to investors before the recent GDR issue that the monopoly will not be disturbed till the 2004.

A presentation to the prime minister on the issue of VSNL's monopoly of international traffic and the high international traffic and the high international call rates made by a former VSNL official gave graphic details of the outcome of the VSNL monopoly.

The main burden of the presentation was that the high call rates for traffic from India were encouraging several foreign companies to bypass the system and provide much cheaper services to Indian subscribers through the US route.

Following the presentation, made in the presence of the new votary of information technology , Andhra Pradesh Chief Minister Chandrababu Naidu, whose clout in the ruling United Front is well know, the demand for de-monopolising international traffic has received attention at the highest level.

- Compiled from the Indian media

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