The good news is that international call charges may soon halve. The bad news is that the value the Government expects for its 25 per cent stake in Videsh Sanchar Nigam Ltd (VSNL) may also come down by half. The Government has accepted the recommendation of the Telecom Regulatory Authority of India to allow private players to offer international telephone services. This will end VSNL's monopoly over international telephony. From April 1, 2002, customers will be able to choose from several operators for making international calls. Bharti Group Chairman Sunil Mittal, for example, says he would be ready to offer international telephony as soon as he gets the licence. Bharti's network is expected to be in place by January 2002.

Right now, revenue earned from international calls is shared between the international carrier, VSNL and the Bharat Sanchar Nigam Ltd (BSNL). That is because VSNL has no domestic network and uses bsnl's network to carry calls. But bsnl's monopoly in domestic long-distance telephony too is on its deathbed. Bharti, Reliance and the Tatas are setting up a domestic long-distance network for carrying calls within the country.

Once the private companies begin operations, long-distance call tariffs are expected to come down dramatically. Since they will have their own gateways and domestic networks, these private companies will be able to charge low rates for outgoing international calls.

All this means more hiccups in disinvesting the government stake in VSNL. As tariffs drop, the PSU's bottom line would be hit hard, making it less attractive to potential buyers. Already, the bidders are reviewing their options. VSNL earned Rs 6,464 crore from international telephony in 2000-1. This pie is now up for grabs. Meanwhile consumers can expect package deals on all their phone calls including cellular services.

-Vivek Law

FACTIONALISM
Troubled Delhi Belle

The chief minister gets a lesson in power play from the congress high command

LOOk WELL: Shaken by the stir

Constituting the council of ministers is a prerogative of the chief minister only in textbooks. At least that was the lesson the Congress high command taught Delhi Chief Minister Sheila Dikshit when she asked two of her colleagues, including the Lokayukta-indicted Yoganand Shastri, to quit. AICC General Secretary Kamal Nath, whose ties with Dikshit have been less than cordial, seized the opportunity. She should have four new faces, he decreed. For over a week, Dikshit had to sweat it out to induct favourite Ajay Maken. Nath wished to bring in PCC chief Subhash Chopra and Speaker Chaudhary Prem Singh to prepare the party for the upcoming municipal elections. "We wanted stalwarts in the Government to counter BJP heavyweights like Madan Lal Khurana, Sahib Singh Verma and V.K. Malhotra," says Nath. He ended up backing a has-been like Deep Chand Bandhu. Result: a new team that sends no message. An AICC functionary sees it another way, "We wanted to tell chief ministers that they can't have their way. They have to head a Congress team." Is Karnataka Chief Minister S.M. Krishna, who arrived in Delhi with 15 MLAs and a plan to expand his cabinet, listening?

-Lakshmi Iyer.

All in One

"Socialists can't stay together for more than six months and separately for more than two years," says Ram Jeevan Singh, Janata Dal (United) member. Singh is part of the committee formed to finalise modalities for the merger of the three constituents of the old Janata Dal in the National Democratic Alliance. The apparent objective is to enhance bargaining power during prior to the Uttar Pradesh elections. The other constituents are the Samata Party and Ram Vilas Paswan's Lok Janshakti. Leadership is the issue-JD(U) chief Sharad Yadav, Paswan and George Fernandes don't get along.

-Sharad Gupta