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VSNL reduces bandwidth rentals by 34 to 40 per cent

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VSNL reduces bandwidth rentals by 34 to 40 per cent

Videsh Sanchar Nigam Limited (VSNL) has decided to reduce the annual rental of international bandwidth for international private leased circuits (IPLCs) by 35 to 40 per cent.

It has also settled its outstanding dispute with FLAG Telecom and has allowed FLAG to sell its bandwidth capacity directly to ISPs with immediate effect and to international long distance (ILD) service providers from April 1, 2002.

However, FLAG will have to pay interconnect and access charges to VSNL. FLAG director South Asia Niraj Gupta also said that the company was waiting for VSNL to approach FLAG for deciding on the access charges before it starts selling directly to other companies.

VSNL has paid a special interim dividend of Rs 75 per share, adding up to a total of Rs 2,356 crore, including dividend tax. VNSL had presented a dividend cheque of Rs 1132.21 crore to Mr Mahajan for the 52.97 per cent shares of VSNL held by the government. Since October 2001, VSNL has paid a total dividend of Rs 3,926 crore, of which Rs 2,250 crore has been paid to the Government.

Source: Financial Express


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