VSNL to bid for long distance telephony

VSNL to bid for long distance telephony
EXPRESS NEWS SERVICE

Chennai, July 18: The Videsh Sanchar Nigam Limited (VSNL) will bid for long distance telephony when the market is opened, chairman and managing director S K Gupta said here today.

He told mediapersons that the decision was taken following Prime Minister Vajpayee's announcement in the recent information technology conference that long distance telephony would be thrown open on Independence Day.

Gupta said that VSNL was prepared to pay the fee fixed by the Central Government and acquire the rights. Asserting that the VSNL was prepared to face competition from the private operators he denied charges that the VSNL was not granting the demanded bandwidth.

He however added that the VSNL had not received any communication from the Central Government on its decision to allow internet companies to tap international cables. As per the agreement with FLAG in force which was signed in 1995, any sale of bandwidth would have to be made through the VSNL.

The bandwidth capability which was 753 mega bits will be increased to MR 1300 mega bits in 2004, he said. By the next year it was proposed to acquire 2000 mega bits, he added.

VSNL which had licences to operate only in six cities in the country had sought an all India licence from the Central Government, he said.

VSNL had signed a memorandum of understanding with a popular portal, indiainfo.com, Gupta said and added that VSNL-Indiainfo.com will contain information and provide e-commerce facility.

VSNL was conducting laboratory experiments on voice over telephony, Gupta said. The facility would be introduced once it was made legal.

VSNL's capital expenditure for the Ninth Plan was Rs 5,000 crore, of which Rs 2,000 crore had already been utilised.

There were four lakh internet customers and about 10,000 new customers were added on every month. VSNL was looking at the possibility of providing internet service through cable television, Gupta said.