VSNL to grant FLAG access to Mumbai cable landing station: Tribunal

Mumbai, Sep 8 (UNI) The International Chamber of Commerce (ICC) Arbitration Tribunal has by a majority award, ordered the Tatas-owned Videsh Sanchar Nigam (VSNL) to grant FLAG access to the Mumbai cable landing station.

Announcing this in a notice to the BSE today, VSNL said that the Tribunal's order was on issues of legal liability and non monetary relief relating to its dispute with FLAG Telecom Group (FLAG) regarding the interpretation of the Construction and Maintenance Agreement (C&MA) governing the FLAG Europe-Asia (FEA) cable system to which Flag and VSNL, besides various other parties are signatories.

In effect, FLAG's access for VSNL's Mumbai cable landing station of the FEA cable system was for the purpose of installation, inspection, testing, training and other functions so as to equip capacity of the FEA cable system to any level that is desireable.

VSNL was, and remains, disappointed that the Tribunal decided by a 2:1 majority to reject what the company had understood to be the effect of the C&MA.

The company yesterday filed a Writ in the Netherlands seeking to set aside the award.

Notwithstanding the company's application, it will continue to comply with the terms of the award, as issued, until such time as it may be set aside, VSNL added.

UNI SN WD SKB1606