Reliance-Flag Telecom wins case against VSNL

MUMBAI: In a major development, an international arbitrator has given Flag Telecom, which was acquired by Reliance Infocomm, the rights to upgrade and sell international bandwidth capacity on Flag-Europe Asia (FEA).

The International Court of Aribitration of International Chamber of Commerce came out with the ruling while hearing a dispute between Flag and Tatas-owned Videsh Sanchar Nigam Ltd.

The move would enable, Flag to reduce the international bandwidth prices, which is crucial for BPO operations and other international telephony services.

Flag also has been given access to VSNL's landing station in Mumbai.

In a communique to the Bombay Stock Exchange on Friday, Reliance Communication Ventures Ltd said that its associate Flag Telecom Group Ltd had informed it about the aribtral award in Flag's favour.

The dispute between Flag and VSNL over the former's right to access any landing station including that of VSNL in Mumbai was referred to the International Chamber of Commerce in December 2004.