Vsnl Plans Satphone Jv, Specialised Services Unit

The public sector Videsh Sanchar Nigam (VSNL) is planning a joint venture for mobile satellite services and a subsidiary for value added services.

This was disclosed by the officiating chairman and managing director Amitabh Kumar at the 12 th annual general meeting of the company on Monday.

Kumar also said that a decision on the transit services joint venture and regional hub project is expected soon.

VSNL has also chalked out an ambitious capital expenditure plan of Rs 5031 crore during the Ninth Five Year Plan period. The company has already spent Rs 447 crore in 1997-98.

"The capex is aimed at development of the basic international telephony business as well as specialised and value added services," said Kumar.

In 1998-99 VSNL is planning to invest Rs 1000 crore. Major projects being implemented are Sea-Me- We 3 optical fibre cakle system, a network management centre, additional earth stations, investment in ATM and value added services.

Kumar also said that the new uplinking policy announced by the government allows VSNL to offer uplinking services to Indian TV channels therough its network of earth stations. Three of the earth stations are already ready.

"The Telecom Regulatory Authority of India's (TRAI's) recently announced recommendations on telecom tariff rebalancing envisage a significant reduction in international call rates from India.

These are in line with VSNL's own recommendations and will lead to reduction in illegal services like callback services, use of leased lines for PSTN traffic, refiling and arbitrage services and provide a boost to outgoing traffic from India.

Moreover, the company's revenu sharing agreement with DoT will enable us to capitalise on the enhanced traffice arising out of reduction in collection rates," Kumar added.

VSNL is also bullish on the new Internet Services Provider policy announced by the government as it will lead to the requirement for greater international connectivity and bandwidth. This will generate additional business for the company.