DTS to become corporate entity from Oct 1

National Action Committee against Corporatisation, which comprises three major unions, criticised the decision saying BSNL would not be financially viable and could jeopardise the target of providing communication linkage in far-flung areas and apprehended that government would eventually divest half of its stake in the new company.

Communication Minister Ram Vilas Paswan said the interest of employees would be fully protected after corporatisation and that government was now negotiating with unions on various staff-related issues.

"Financial viability, pension to employees and job security were the three demands raised by employees. The issues have been discussed by a Group of Ministers (headed by himself). We are continuing the meetings," he said.

Further cut in ISD rates likely: Communication Minister Ram Vilas Paswan today indicated a further cut in long distance tariff especially international calls (ISD) once the monopoly of VSNL ends with the entry of private players prior to the scheduled date of 2004.

"The Telecom Commission is considering the proposal to open the ISD for private sector before 2004. But government would ensure that Videsh Sanchar Nigam Ltd (VSNL) does not suffer due to this," Paswan said. He said the government would compensate VSNL fully if the ISD was open for private sector.

Telecom Regulatory Authority of India (TRAI) had last week slashed the long distance traffic in the second phase of tariff rebalancing and Department of Telecommunication (DoT) had projected a revenue loss of up to Rs 800 crore due to this.

Inaugurating an international call centre by US-based GE Capital International Services, Paswan said call centres had great potential in India. The government has already approved 34 call centres which would be established in India facilitating customer service activities by global companies, in the country.

India would be an attractive market for global companies due to cheap labour available in the country, Paswan said adding that India can make up to four billion dollars by 2004 and nine billion dollars till 2008 through opening of international call centres.

He said that VSNL had acquired additional international bandwidth of 450 giga bytes to meet the demands of corporates.