The Hindu Business Line : BSNL switches off Data Access

BHARAT Sanchar Nigam Ltd (BSNL) has pulled the plug off Data Access, the international long distance (ILD) services company, for not settling its long-standing dues.

Data Access, which claimed to have a 30 per cent market share of the incoming ILD calls, will not be able to terminate calls on any of BSNL's 40 million subscribers, following the move.

While Mr Sidharth Ray, Managing Director, Data Access, was not available for comments, the BSNL move would have serious implications on the ILD company's business.

Analysts said that the disconnection would sound the death-knell for the company, if action is not taken by the management to settle the dues quickly.

This is second big blow for Data Access in the last one year, after its plans to go for an initial public offering (IPO) werestalled by the Securities Exchange Board of India (SEBI) on grounds that some of the company's directors were involved in illegal activities with respect to foreign exchange.

The entry of Data Access in the ILD market had caused a lot of discomfort to the incumbent Videsh Sanchar Nigam Ltd (VSNL).

BSNL had used the market-defying low settlement rates offered by Data Access, to negotiate a better deal with the Tata-managed VSNL.

Senior BSNL officials said that the state-owned company had now withdrawn interconnection given to Data Access, since the dues were running beyond a few hundred crores of rupees and the ILD company had not responded, despite many reminders.

They addedthat Data Access' network was being used to carry illegal traffic into the country.

When asked whether the BSNL move would lead to cancellation of Data Access' ILD licence, senior officials in the Department of Telecom (DoT) said that it was not a licensing issue.

"The dispute is on interconnection between two companies. DoT is not involved in the matter at this stage and the question of cancelling the licence does not arise."

The BSNL move, however, will not have any implications on telecom consumers, since Data Access was essentially bringing incoming calls to India through an arrangement with international carriers.

Now, these international carriers may route the traffic into the country through other ILD players like Bharti, Reliance or VSNL.

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