MUMBAI, July 8: The British Telecommunications-MCI consortium has made a strong pitch with the Department of Telecommunications (DoT) to approve its bid for the proposed $500-million regional-hub project of Videsh Sanchar Nigam Ltd (VSNL). The move comes after the two other shortlisted contenders -- Cable & Wireless and Global One -- failed to submit their proposals by the June 11 deadline.According to sources, the BT-MCI consortium has informed DoT that since it now remains the sole bidder, it should be allowed to partner VSNL for the project. It is also understood that the consortium has asked DoT to take a decision soon as the project has been considerably delayed ever since it was conceived about two years ago.
VSNL had, in the last week of May, shortlisted the bids of BT-MCI, Cable & Wireless and Global One from the seven bids that it had received. It had given the three contenders time till June 11 to submit their proposals.
While BT-MCI submitted its proposal before the deadline, sources saidthe other two did not do so citing inadequate time between the shortlisting and the last date for submitting fresh bids. The project was initially proposed to be a joint venture between VSNL, BT and MCI.
However, after much controversy, DoT rejected the proposal and instead directed VSNL to invite bids from international telecom companies. This considerably delayed VSNL's plans to set up the hub as it had to come out with an offer inviting bids.
By October 17, the last date for submitting the bids, VSNL had received only seven offers with global majors like AT&T and NTT of Japan deciding not to participate in the project. A few other major companies like Telstra of Australia and Teleglobe of Canada, however, participated in the bids.
The shortlisting process, too, was delayed owing to a variety of factors. Initially, a high-level committee, comprising members of the Department of Telecommunications (DoT) and VSNL, was formed to evaluate and shortlist bids. The committee was unable to meet for some timeowing to the Mahanagar Telephone Nigam's (MTNL) global depositary receipts issue.
The regional hub proposes to route all international voice and data traffic originating from south Asia. A few weeks ago, however, DoT disallowed the project from investing in any form of infrastructure. According to DoT, if the project invests in infrastructure, it would amount to breaking its monopoly on domestic long-distance services.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
