VSNL studying FLAG Telecom’s $406-mn claim
The Tata-owned Videsh Sanchar Nigam (VSNL) has said it is studying the $406-million claim for monetary relief made by Reliance Communications’ FLAG Telecom and will submit its response to the arbitration tribunal in “due course”.
By TNN |
MUMBAI: The Tata-owned Videsh Sanchar Nigam (VSNL) has said it is studying the $406-million claim for monetary relief made by Reliance Communications��� FLAG Telecom and will submit its response to the arbitration tribunal in ���due course���.
The two sides are locked in a dispute over the interpretation of the construction & maintenance agreement governing the FLAG Europe-Asia (FEA) cable system.
In May 06, the International Chamber of Commerce Tribunal had ordered VSNL to grant FLAG access to the FEA cable system���s Mumbai cable landing station for installation, inspection, testing, training and other functions. VSNL filed a writ in the Netherlands seeking to set aside the partial award.
���The company is studying FLAG���s claim and will file its response with the Tribunal in due course as per the schedule finalised by the Tribunal,��� VSNL told the BSE on Monday.
VSNL announced that it will introduce Ethernet services in the Indian market on Wednesday. Ethernet, a data delivery technology used in local area networks, provides the option of connectivity between two networks.
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���We will deliver an extensive domestic footprint connecting 120 major Indian cities to key business hubs across North America, Europe and Asia,��� VSNL vice president (Global Product Management) Arvind Mathur said. The global market for Ethernet was expected to go up to $22.5 billion by 2009 from $5.4 billion in 2004. ���We expect to get clients from pharmaceutical, media, financial services and manufacturing sectors,��� Mr Mathur said.
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