RCL's Flag seeks damages from VSNL

Accusing VSNL of not honouring the award of the international tribunal between both the companies, Reliance Communications which owns undersea cable operator Flag Telecom, today reapproached the tribunal against the Tata group company seeking a time table for damages and "determination of the reasonable and cost-based access charges".

"Since the 90 days period permitted by Arbitration Award for negotiations, in good faith, for reasonable access charges at VSNL's Mumbai landing station is over, Flag has approached the Tribunal for setting a time-table for determination of damages due to the unlawful refusal of VSNL to grant access to Flag from 1998 onwards," Reliance Communications said in an official release.

On May 26, the International Court of Arbitration of the International Chamber of Commerce asked VSNL to allow Flag access to the FEA cable landing station. It also held that Flag can upgrade the capacity of its FEA system at Mumbai to any level and lease the upgraded capacity to international telecom entities.

"The negotiations, as under an award of the international tribunal, between Flag and VSNL for determination of reasonable and cost-based access charges at VSNL's Mumbai landing station have failed due to monopolistic and anti competitive attitude of VSNL, a statement by Reliance Communications said.