BSNL accuses VSNL of overcharging on international calls

10 Mar 2004

Fast rising cellco BSNL (Bharat Sanchar Nigam Ltd) has accused international wireline provider VSNL (Videsh Sanchar Nigam Ltd) of overcharging for carrying its international long-distance calls over the past two years. On Monday VSNL quoted a settlement rate of INR2.2 per minute for calls to the UK and North America, causing BSNL to object to the INR6 per minute it says it has been charged by VSNL since 2002. The cellco claims that as a result it has been overcharged by INR1.82 billion annually. VSNL has countered by claiming that it is unfair for BSNL to compare old rates to the new ones because international settlement rates have fallen significantly in the intervening two years.