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Mumbai: The long dispute between Reliance Infocomm and Tata-owned Videsh Sanchar Nigam Limited (VSNL) on the issue of bandwidth has been resolved with the signing of an agreement. The controversy arose soon after Reliance Infocomm acquired Flag Telecom.
A Flag Telecom note said Flag Telecom and VSNL reach-ed an agreement on May 4, 2004 for the sale of 17 STM-1s of capacity - 1 STM translates to 155 Mbps. “This will be on the Flag Europe Asia (FEA) cable system into/from India. Under the terms of this agreement, six STM-1s westward and 11 STM-1s eastward will become available immediately to the marketplace.”
With this, the two have settled their differences amicably to the extent of the issue of access for existing capacity available.
“Additionally, VSNL has reduced its landing station access charges per STM-1 by 25 per cent and Flag has agreed to the allocation of five STM-1s to VSNL at a non-discriminatory price,” added the release.
Following the signing of this new access agreement, the initial 17 STM-1s are immediately available for activation. These would be activated on the Flag Europe Asia cable system.
With the help of this agreement, an additional bandwidth capacity of about 2.65 Gbits/s will become available for sale to/from India.
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