FLAG takes VSNL to arbitration court over access charges
FLAG, the global telecom arm of Reliance Communications (RCL) has once again approached the International Court of Arbitration against Tata-owned VSNL seeking the determination of cost-based access charges at VSNL’s Mumbai landing station.
By TNN |
DELHI/MUMBAI: FLAG, the global telecom arm of Reliance Communications (RCL) has once again approached the International Court of Arbitration against Tata-owned VSNL seeking the determination of cost-based access charges at VSNL’s Mumbai landing station.
FLAG has also said a time table should be set up to assess damages due to the “unlawful refusal” of VSNL in granting access to FLAG from 1998.
However, a VSNL official said that VSNL is fully compliant with the Arbitral Award. VSNL believes that its commercial proposals related to access charges are fair and reasonable.
On May 26, the international tribunal had ordered VSNL to allow FLAG access to the FEA (Flag East Asia) cable landing station, which is owned by VSNL. FLAG was also allowed to upgrade the capacity of its FEA system at Mumbai.
In compliance with the tribunal award, VSNL has allowed FLAG access for upgrading the cable capacity. FLAG informed the BSE on Wednesday that the negotiations between FLAG and VSNL for determination of cost-based access charges at VSNL’s Mumbai landing station have failed “due to monopolistic and anti competitive attitude of VSNL.”
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Since the 90-day period given by the arbitration award for negotiations for reasonable access charges is over, FLAG has approached the tribunal for the determination of access charges, RCL added.FLAG had moved the International Court of Arbitration in December ’04, accusing VSNL of denying it free access to its cable landing station.
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