In a communique to its employees, VSNL acting CMD Amitabh Kumar described 1999 as a "watershed year in the history of communications in India".

According to Kumar, VSNL supports the reduction in international tariffs proposed by the TRAI, as the calling rates from India are too high. "VSNL has to gear up as an organisation providing quality international calls at higher volumes," Kumar has said.

"We must recognise that worldwide, long distance and international calling rates are coming under severe pressure. Services are openly being offered in the US for 10 cents a minute, coast to coast, without any distinction between cellular, local and long-distance charges. What many of us are not really aware of is that a similar phenomenon is happening in international markets, with calling rates as low as 10 cents a minute being offered between the US, UK, France, Germany, Sweden, Norway, Australia, Canada.....! The traditional long-distance and international business is under severe pressure and we as an organisation, need to recognise this as we enter the new millennium in the new telecom environment," Kumar said in his communique.

Kumar has also outlined the impact of the proposed new telecom policy on the company and the need for the organisation to brace up to greater competition. "Telecom is expected to provide a thrust for national development rather than be funded by other sectors of the economy. We should expect to see reverberations of these changes manifest themselves even in the field of international telecommunications and present new challenges to the organisation," said Kumar.

He added, "At the very least, it will require new strategies and a new level of commitment from one and all. We will need to move away from being an arm-chair organisation to one of action and activity."

"The impact of the opening up of internet services will be felt during the current year when VSNL will be in direct competition for its Internet services with a number of operators. I do trust that VSNL will rise to the occasion of maintaining and enhancing its customer base, which is possible only through courteous interaction and prompt response to its customers," said Kumar.