Reliance ISD calls cost BSNL Rs 200 crore

Bharat Sanchar Nigam Ltd (BSNL) has estimated an initial loss of at least Rs 200 crore arising out of Reliance Infocomm allegedly routing international long distance calls into the country, and terminating them on BSNL's network as local calls.

BSNL is ascertaining the details from all its circles, and top officials expect the loss to be higher that initial estimates.

A senior BSNL official told Business Standard that, "we are probing further and initially it appears that the loss could be over Rs 200 crore. It might still be higher and can run into hundreds of crores once we get reports from other circles. In certain circles we are also ascertaining the time from when Reliance Infocomm has been diverting international calls as local calls on our network."

BSNL has 26 circles across the country. BSNL served a disconnection notice on Reliance Infocomm and asked it to pay access deficit charges on calls routed by it as local calls which were allegedly international calls.

"We have served them with a week's notice, which will be followed by the demand note for the amount to be paid by Reliance Infocomm. In case they default on payment we will disconnect them for non-payment of dues," the official added.

Earlier, while confirming that BSNL has served a disconnection notice, A K Sinha, chairman and managing director, BSNL said: "This is routine matter and normal across the world. There is a code of conduct and agreement with various operators. If there is any violation for non payment of dues, we disconnect."

Sinha was speaking at the sidelines of the Rural Marketing Summit 2004 organised by the Federation of Indian Chambers of Commerce and Industry (Ficci).

On the disconnection of Data Access to the BSNL network, Sinha said that Data Access refused to make payments for international long distance incoming calls terminated on the BSNL network. "This too was a matter of routine," he claimed.