June 28, 2002 | 1212 IST
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Money > Business Headlines > Report June 28, 2002 | 1212 IST |
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WorldCom fall may not trip VSNL linesThomas K Thomas The $3.8 billion accounting scandal from US telecom company WorldCom is unlikely to have any major impact on Videsh Sanchar Nigam Ltd's international long distance operations. Senior VSNL officials said the ILD traffic can be routed through other international carriers if the need arises. They said that VSNL is awaiting a formal communication from WorldCom on the matter. S K Gupta, managing director, VSNL said, "We are studying the situation. We have relationships with 85 international carriers and WorldCom is just one of them. We are collating information as to how much traffic WorldCom carries from VSNL." When asked as to whether WorldCom owes any money to VSNL, Gupta did not deny the possibility. "The settlement is done periodically so there could be some outstandings. We are looking at how much outstanding amount is to be settled between the two sides. A clear picture will emerge in the next two to three days," he said. Rowena Kwok, WorldCom's spokesperson based in Hong Kong, could not be reached for comments. Sources in VSNL added, "We enjoy a long-standing and cordial relationship with WorldCom. There has not been any official communication received by VSNL from WorldCom on the reported matter in the press. VSNL is following the situation." In the past two years WorldCom has opened three offices in India - in New Delhi, Mumbai and Bangalore. Along with VSNL, it had recently installed and commissioned frame relay node in Mumbai connecting India to Hong Kong and New York with high speed backbone links. On Wednesday WorldCom had revealed it had inflated its profits by $3.8 billion. The company which gets 89 per cent of its revenues from the US, promptly announced plans to axe 17,000 jobs starting Friday. Powered by ALSO READ:
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