Date:12/04/2006 URL: http://www.thehindubusinessline.com/2006/04/12/stories/2006041203810100.htm

Back BSNL shortlists 8 cos for ILD

Thomas K Thomas

France Telecom, MCI, SingTel, Telekom Italia among others in the fray

Independent moves
At present, ILD traffic is routed through VSNL network
From now on, VSNL will have to compete with selected carriers
ILD tariff for BSNL customers may be reduced

New Delhi , April 11

In a blow to Videsh Sanchar Nigam Ltd's (VSNL) control over the country's international long distance (ILD) segment, state-owned Bharat Sanchar Nigam Ltd (BSNL), on Tuesday, decided to partner with eight carriers including global majors France Telecom, Telekom Italia, SingTel, FLAG Telecom and MCI for carrying its ILD traffic.

At present, a significant part of the Rs 4,000-crore worth of ILD traffic generated by BSNL's 60 million telephone users is routed through VSNL's ILD network. While the Tata-managed VSNL is also part of the panel of eight companies, it will now have to compete with the selected international carriers to offer the best price to BSNL for various international sectors. Indian ILD operators Bharti Tele-Ventures and Reliance Infocomm have also been empanelled by BSNL as its favoured partners.

Preferred partners

"We have shortlisted the 8 companies to be our preferred ILD partners for a two-year period. We will shortly be asking these companies to put in their financial bids for each of the international destinations. Empanelling would restrict the bids between the eight selected companies but does not necessarily mean that all of them would get assured business. That will depend on who gives us the best rates," said a BSNL official. This would mean reduced ILD tariff for BSNL consumers.

Last year, BSNL had invited bids from carriers who could offer international bandwidth through optic fibre cable and satellite links to enable it meet the demand for its ILD Voice and data services. In response, it received expressions of interest from eight companies, which were opened on August 26, 2005 and all of them have been empanelled.

The move is in line with BSNL's strategy to offer ILD services independently. As part of this strategy, the company is also laying its own undersea cable starting with a link to Sri Lanka and planning another one to Singapore. It is also setting up its own landing station from where the international carriers will be allowed access to BSNL's network.