"While FLAG capacity remains artificially restricted as access supply remains in the control of Videsh Sanchar Nigam Ltd for allocation, we do not have the ability to respond to market in line with demand for the good of the industry or the Indian economy," said a FLAG spokesperson.
FLAG cannot sell capacity directly to BPO companies in India as it is not a licensed operator in the country, and has to sell it through Internet Service Providers or International Long Distance Operators.
FLAG has 17 unused STM-1s at FEA cable India landing station, controlled by VSNL, of which five were assigned to VSNL and six to Reliance group companies.
VSNL is yet to exercise the option of buying the five STM-1s assigned to it, while it is not even activating the remaining six STM-1s.
On the reach issue, where the global telecom carrier, had sought for an extraordinary management committee meeting of FLAG Telecom, citing unauthorised integration and diversion of traffic, FLAG denies it as a baseless allegation.
On the objection of VSNL regarding sales of capacity by FLAG to Reliance group entities, the spokesperson said, "The Telecom Regulatory Authority of India advised both FLAG and VSNL to mutually discuss and resolve the issue.
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