Maran urges VSNL to cut bandwidth prices


Jan 28, 2005
source :

NEW DELHI: The Centre on Thursday asked Ratan Tata, Chairman of the Tata group, to reduce the international bandwidth prices in view of the huge potential for India-centric BPO services. The request was made by Communications and IT Minister Dayanidhi Maran.

Mr. Tata assured the Minister that VSNL would not like to play a monopolistic role, but added that the matter of reducing the bandwidth prices was to be decided by the VSNL management.

\"VSNL has made huge investments to fuel the capacity and we are making it truly a global company... We do not plan to play a monopolistic role... We would also like BSNL to share its capacity for achieving the goal,'' he said.

While announcing the integration of VSNL with Tyco Global Network, which the Tata group company acquired for $130 million, Mr. Tata said VSNL had been and continued to be in a close partnership with the Government to achieve the goal of making the company a truly global one.

Mr. Maran pointed out that the tariffs for international bandwidth in India were high compared to the international benchmarks, especially for the high bandwidth circuits.

\"I am informed this is unfavourable to India. This puts India in a competitive disadvantage. India's other advantages get nullified by this factor,'' Mr. Maran said.

\"I shall be extremely happy if Mr. Tata's integration with Tyco can bring Indian costs at least on a par with other countries,'' he added.

He also announced that the BSNL had undertaken the work of laying an undersea cable from Chennai to Sri Lanka and to connect Andaman and Nicobar to Singapore.

VSNL completed the acquisition of undersea cable network company Tyco Global Network earlier this month.

Tyco has over 60,000 km undersea cable network in of North America, Europe and Asia.

The ongoing management responsibility of Tyco Global Network would be assigned to VSNL International, a division leading VSNL's expansion into the e-global market.

VSNL has reported a marginal rise in the net profit at Rs. 127 crore in the first three months of this fiscal against Rs. 126 crore in the first quarter of the previous year, the company said in a statement. The total income during the period under reference went up by 15 per cent to Rs. 944 crore from Rs. 819 crore in the year ago period. [/b]


Even if they reduce prices will that be applicable to home users or is this only for corporate connections?


The Global Village Idiot
Jan 21, 2005
The news tickers on one of the cable news channels (NDTV Profit I think) mentioned VSNL would "consider" lowering international bandwidth prices.... in.... drum roll please... Q4 - 2006 ! woohoo


Jul 26, 2005
Originally posted by vishalrao@Jul 31 2005, 02:06 AM
drum roll please... Q4 - 2006 ! woohoo

dude thats still a year !! why the drum roll ???


Mar 25, 2005
nopes..was Q4 2006 :( ..was coming on CNBC n NDTV profit..VSNL may look into cutting bandwidth prices by Q4 2006..n also dat some sealink will be completed by then


Jan 29, 2005
i caught five minutes of ratan tata's speech on cnbc... information, by his own admission, is crucial for success in this century i.e. determines the country's future. hence, we might even call the speech an address to the nation.however, it was yet another moment, when anyone in the audience even mildly interested in information technology issues, should've gotten up and shouted, "down with the corporate nazis, down with the marketing monkeys."the whole speech was a cleverly concocted hash of marketeze... though i don't (and prefer not to) remember the exact words now, i'm sure bullshit terms like "synergy", "solutions" etc etc (make up your own combinations - they're predictable, but can only fool some of the people some of the time.)of course, to come back to ratan tata. we know he's a big man... his flight was once stuck at bombay airport due to an air traffic controllers agitation ... legend has it that he made a few calls , and the union government swung into action (the way they unexpectedly do, with a kick in the batooties) and broke the strike. yadda yadda yadda.anyway, for someone so important, so smart, so smooth, it was sickening to see the ol' laloo prasad yadav theory of development being shamelessly parroted. "the central government is screwing us, not giving us money! the central government doesn't care about the state of bihar!" was cleverly adjusted, and tumbled out of tata's mouth as "the rest of the world is shafting us! the world has been keeping us starved of bandwidth!" (the power of the word "starved" was sought to be effectively utilized --- i.e. if you can't convince them through business means, take the route via conscience.)translation (and we all know the pattern) "everyone is against us. (but) we're good people... and we want good for our people" (and not just club class travel, bunglaa, naukar aur gaadi for the few.)phew.don't reliance and tata's now control some of the biggest global telecom networks? but then, it's the marketing weenies who write the speeches... craft the "no limits, just don't use more than a few hundred MB a month."fall 2006 is a long time away, especially for honest, tax paying, music-and-movie downloading consumers like us.

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