Business Standard: Videsh Sanchar Nigam Ltd (VSNL) has extended an olive branch to the Reliance group-owned Flag Telecom, hoping to end the ongoing rivalry between the two companies. The Tata group company, in a letter on July 27, 2005, to the Telecom Regulatory Authority of India (Trai), said the companies had amicably settled the bandwidth issue.
Reliance Infocomm and VSNL were on a war path, with the former stating that the Tata group company was restricting access on its Flag Europe Asia (FEA) cable, resulting in an artificial rise in bandwidth prices. On the other hand, VSNL had accused Reliance of overselling bandwidth on the cable system and creating a bandwidth shortage. In a letter dated July 12, 2005, Reliance Infocomm had also accused VSNL of accessing
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