Telecom regulator TRAI on Thursday said it was still discussing the issue of resale price of bandwidth supplied by Flag Telecom where the company has been accused of offering unfavourable commercial terms and conditions to Indian information technology and information enabled service companies and added that no directive has yet been issued on the matter.

There were concerns about resale price of bandwidth to small operators; that was still being discussed, D P S Seth, member, TRAI, told reporters here on the sidelines of an 'open house' by TRAI.

He said the issue was that Flag has not been able sell the bandwidth to any operator. "We told them (Flag) to look at it in a manner in which the consumer wants a particular bandwidth to be purchased and don't fix your conditions and instead look at the market."

Asked if Flag Telecom was overcharging small companies, he said, "We have not gone into the details on how much they were charging but we were told that they offered a certain package which was not in the form in which smaller operator wanted."

"We told them that you have to offer something which the market wants to buy. It cannot be something that you simply want to sell. But no directive so far has been given to Flag Telecom over this," Seth said.

TRAI at a meeting last month-end had asked Flag to help the IT and ITeS industries by providing bandwidth on reasonable terms after being told of the company's unilateral terms and conditions of selling bandwidth to small IT and ITeS companies.