The Telegraph
Since 1st March, 1999
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MTNL sets one-week deadline for VSNL

New Delhi, Sept. 4 (PTI): Mahanagar Telephone Nigam Ltd today signed an international long distance interconnect agreement with Data Access and Bharti, and also served an ultimatum to Videsh Sanchar Nigam asking it to sign an agreement within a week, failing which the Delhi-based company would divert traffic to other operator.

According to the agreement signed by MTNL with the two private ILD operators, the termination rate ranges between Rs 4.40 per minute and Rs 4.75 per minute with up to 20 million minutes “send-or-pay” per month clause with one of the operators, MTNL chairman and managing director Narinder Sharma said. MTNL will also get 50 paise per minute for transit of calls through trunk automated exchange, he said.

Meanwhile, sources said since MTNL so far was not getting any amount for termination, the latest arrangement may bring in additional revenues for the state-owned corporation. Citing an instance, they said last year when MTNL had entered into an agreement for some time, it received Rs 100 crore for termination.

Sharma also recalled having written at least four letters to VSNL but could not get any response.“As per the agreement, we are bound to move our traffic to VSNL for two years from the date of its privatisation provided they offer competitive rates otherwise we are free to move to other operators,” Sharma said.

Though VSNL has reduced ISD rates matching Bharti, it is yet to sign fresh agreements for revenue sharing among the originator, carrier and terminator of an ISD call.

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