Vsnl Right In Holding Rate, Says Mahajan

The Union minister for IT and communications, Pramod Mahajan, today said he supported the strategy adopted by Videsh Sanchar Nigam Ltd (VSNL) in not precipitately responding to the international long-distance call tariff cut announced by Bharti in April.

Speaking to Business Standard, Mahajan said: "It is not that VSNL will have to respond to unrealistic tariffs announced by companies that have not started offering services. For instance, if a company says it will offer international long-distance services at Re 1, VSNL may not think it wise to respond."

Asked about the disagreement between Bharat Sanchar Nigam Ltd (BSNL) and VSNL in revising its revenue-sharing arrangement for international long-distance services, Mahajan said the Cabinet order was quite clear. He said BSNL and MTNL would have to route their international long-distance calls through VSNL.

 

BSNL had argued it would route its calls through Bharti's network if VSNL did not match the terms offered by Bharti. BSNL has given VSNL time till Bharti rolls out its international long-distance services.

Mahajan said: