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VSNL's ISD monopoly may be reviewed

Our Bureau

NEW DELHI, Aug. 13

THE Government has the right to review the monopoly of Videsh Sanchar Nigam Ltd (VSNL) in international long distance communications (ISD) and the question of compensation will be considered when the sector is opened up, Mr. Ram Vilas Paswan, Minister fo r Communications, said today.

The PSU has the right to monopoly in the ISD sector till 2004 through a memorandum of understanding with the Union Government. Hence, any decision to curb the monopoly or advance the deadline would lead to the Government compensating the incumbent.

The Department of Telecommunications (DoT) Secretary, Mr. Shyamal Ghosh, defended the Minister by saying that VSNL had also mentioned in its prospectus for its global float that its monopoly may end before the said deadline, and hence there was no commit ment to the shareholders of the PSU that the monopoly would remain till 2004.

The Minister said that increased competition in other telecom sectors was forcing the Government to rethink on VSNL's monopoly. The Government has also been under pressure from consumers and international investors to bring down ISD charges, Mr. Paswan s aid.

He further said the Government has now allowed private operators to carry the intra-circle as well as the national leg of long distance calls. A provision has also been inserted into the NLD policy whereby the NLD operators can carry the international le g of the long distance call as and when the sector is opened up. These will be done through separate arrangements entered into with the fixed service providers (FSPs).