TRAI to meet VSNL, FLAG on bandwidth issue

Telecom regulator TRAI has fixed a review meeting with VSNL and FLAG on Wednesday. The bandwidth issue could surface in the meeting.

Fighting for settlement of the release of bandwidth, warring players VSNL and Reliance owned FLAG would come together on Wednesday during a review meeting convened by Telecom Regulator TRAI.

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Although no specific agenda for the meeting was disclosed, sources said that the bandwidth tangle would surface during the course of discussion as Reliance had earlier sought intervention of the regulator.

While Tatas controlled VSNL feels that the matter was a commercial issue and Telecom Regulatory Authority of India had little to do in it, Reliance had requested intervention for removal of bottleneck problems in the release of bandwidth.

TRAI's meeting with VSNL and FLAG officials assumes significance in the backdrop of VSNL making an offer to Reliance to release 17 additional STMs and that too with a hefty discount of upto 40 per cent on Access and Facilitation Charges.

Though no final decision has been taken, the new offer by VSNL may clear the decks for reduction in international bandwidth prices.

According to sources, 40 per cent discount by VSNL on Access and Facilitation Charges translate into nearly four per cent reduction in cost of bandwidth by FLAG Cable Systems.