VSNL may sign interconnect with MTNL after BSNL

PTI (courtesy : Indian Express 07/09/2002)

NEW DELHI: Despite an ultimatum to the recently-privatised VSNL, Mahanagar Telephone Nigam's international long distance interconnect pact with the Tata Group controlled company was likely to come after VSNL signed an agreement with the other state-owned corporation, BSNL.

According to MTNL officials, VSNL may sign such a pact with MTNL only after inking a similar agreement with BSNL.

When contacted, VSNL sources said that although there has been no recent communication to MTNL in this regard, sometime ago when the interconnect discussions were held, it was agreed between MTNL and VSNL that first the agreement would be done with BSNL due to its massive network and then with MTNL.

Chairman of Videsh Sanchar Nigam Ltd (VSNL) Ratan N Tata had said in Kochi on Thursday that an amicable settlement with MTNL would soon be reached on the issue of the international long distance interconnect agreement, failing which VSNL would be in 'crisis',

"Talks are on and we are negotiating with the government", Tata had said.

Government should also realise that VSNL as a disinvested company would need some basis for its further operations and VSNL should realise that it is operating in a competitive environment, Tata said when asked about ultimatum served by MTNL. "There must be give and take on both sides", he said.

MTNL, which had signed the agreement with Data Access and Bharti, had served an ultimatum to VSNL asking it to sign an agreement within a week or else the MTNL would divert traffic to other operators.