VSNL to take on USTR over bandwidth issue

Internet and telephony major Videsh Sanchar Nigam Ltd (VSNL) is planning to take on United States Trade Representative (USTR) on allegations that VSNL is creating artificial shortages of bandwidth in and out of India.

"VSNL has in the past refuted USTR allegations. Senior company executives had met USTR representatives in Delhi earlier this week and sought clarifications on the latest report. The company is planning to send a letter to the organisation asking it to 'substantiate the allegations' or 'withdraw it'," an industry source told Business Standard here today.

The Tata group company was also planning to take up the issue with the Telecom Regulatory Authority of India (Trai) and the Indian government, as this was the third time USTR had cast such allegations, he said. VSNL officials declined to comment on the issue.

USTR, which deals with trade and anti-competitive practices, has accused VSNL of creating bandwidth crisis. In its 'Telecommunications Trade Agreements' report, the organisation has also alleged that VSNL was responsible for bottlenecking of bandwidth, in turn, preventing US operators from serving Indian customers.

The organisation had earlier blamed that the anti-competitive practices were against World Trade Organisation (WTO) norms and had sought VSNL to desist from restricting bandwdith landing on Indian shores.

The Indian company controls the gateways of all submarine cables landing on Indian coasts and controls all the bandwidth flowing into the sub-continent.

In a separate move, IDA of Singapore has shot a letter to USTR seeking to set "the record straight on inaccuracies" in its report. The inaccuracies suggests a need for greater due diligence on the part of USTR in its report preparation process.