VSNL violates FLAG agreement: Reliance

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Mumbai: Reliance Communications alleged on Thursday that Tata-controlled Videsh Sanchar Nigam Ltd has violated its commitment under the construction and maintenance of FLAG Europe Asia Cable System.

In a communication sent as a retaliatory disclosure to VSNL's last week notice to the stock exchanges, Reliance said the writ filed by VSNL is aimed at maintaining monopoly in Indian market.

"This action of VSNL is designed to delay the implementation of this award with a view to continuing its monopolistic and anti-competitive practices in India which will harm the ultimate users of international capacity such as ITEs and BPO etc due to exorbitant bandwidth prices maintained by VSNL," Reliance said.

The International Tribunal in its award in May this year, directed VSNL to grant access to FLAG to the Mumbai landing station besides an upgrade of the cable system and access charges that are "fair and reasonable".

In contrast to VSNL's statements, this demonstrates that the other signatories to do not share VSNL's interpretation of the C&MA, the communication added.

VSNL spokesperson refused to comment on the issue.