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VSNL inks interconnect pact with BSNL, MTNL

Videsh Sanchar Nigam signed interconnect agreement with Bharat Sanchar Nigam and Mahanagar Telephone Nigam for routing of international traffic, ending the eight-month old stand-off on interconnect issue that had almost forced the two public sector units to divert their international long-distance traffic to other private operators -- Bharti and Data Access.

The issue, which saw intervention of Deputy Prime Minister L K Advani and Communications Minister Pramod Mahajan who several times held negotiations with the top brass of the Tatas and BSNL to reach an early agreement, came to an end after a series of hectic discussions over the last three days.

Both PSUs in fact had signed the interconnection agreement with the two other private operators, Bharti and Data Access, and had threatened VSNL that they would start diverting traffic to private carriers in case the Tata Group controlled company failed to offer competitive rates.

Commenting on the development, S K Gupta, managing director, VSNL, said "these agreements signed by VSNL today (Tuesday) follow several months of negotiations with BSNL and MTNL."

VSNL was privatised early this year and was acquired by Tatas. The government, after divestment holds 26 per cent equity in the company while the Tatas hold 45 per cent of the equity.

As per the shareholders agreement at the time of divestment, VSNL was to be considered preferential carrier over other operators but with a condition that VSNL offered competitive rates.

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