The Hindu Business Line : BSNL, MTNL likely to settle dispute

Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) appear to be heading for an early settlement on the national long distance (NLD) carriage charges dispute. They are "working out a mechanism" so that the carriage charges are settled as a routine manner.

The settlement could possibly be reached even before May 17, which is the last date for NLD operators (private as well as BSNL) to submit their bids to MTNL for carrying NLD traffic of MTNL. Thus, the agreement may lead to an `out-of- tender' settlement.

BSNL had reportedly asked MTNL to cough up about Rs 900 crore as outstanding dues for 2005-06, on account of charges for carrying NLD traffic and access deficit charge. Meanwhile, MTNL had invited bids from various operators for carrying its NLD traffic. Till date, BSNL has been the NLD carrier for MTNL.

Mr A.K. Sinha, Chairman and Managing Director, BSNL, said, "We are in talks with MTNL on the (NLD) issue. We are in the process of thrashing out most of the issues."

On being asked whether BSNL is ready to negotiate with MTNL and bring down the carriage charges between Delhi and Mumbai for the NLD traffic, he said, "Yes, we are negotiating with MTNL as we would like to continue carrying MTNL's traffic between Delhi and Mumbai."

While the carriage cost between Delhi and Mumbai may work out to be lower given the high usage, it needs to be put in context, he said. BSNL also provides NLD services to MTNL for distant locations such as the North East, Jammu and Kashmir, amongst others, for which the carriage cost works out to be much higher given low levels of call traffic, he explained. However, Mr Sinha declined to divulge exact details of the negotiation.