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I.T. Boom or Doom ..losses continue to World Com ..Enron..Dot Com bust .9-11 ...

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    I.T. Boom or Doom ..losses continue to World Com ..Enron..Dot Com bust .9-11 ...

    WorldCom scam: VSNL faces Rs 575 cr loss

    WorldCom scam: VSNL faces Rs 575 cr loss [] BAIJU KALESH [] TIMES NEWS NETWORK [ FRIDAY, JUNE 28, 2002 12:34:02 AM ] [] MUMBAI: The Videsh Sanchar Nigam Ltd could suffer a loss of $115 million or Rs 575 crore if the beleaguered US long-distance carrier WorldCom files for bankruptcy and is unable to pay its dues to India’s largest international long-distance operator. Telecom sector analysts confirmed that the amount due to VSNL from the second largest long-distance US carrier is about $115 million. International long- distance players have to pay each other a proportion of the charges for calls originating on one network (for instance, VSNL’s network in India) that are completed in another network (WorldCom’s in the US). In December last year, VSNL had signed an agreement with World-Com for continuing mutual support in data and voice services in the US and Indian markets. MCI WorldCom carries more than 60 per cent of VSNL’s total US voice and data traffic. Other US players like AT&T, Sprint and a host of smaller carriers carry the remaining Indo-US traffic. VSNL officials told this paper that the company was in talks with WorldCom and was trying to ascertain the facts of the matter. “We will be in a position to comment on the matter once we have clarity on this subject,’’ the official added. According to telecom experts, international carriers settle their bills after a lag of three to four months as this period is required to reconcile their accounts. The traffic exchange between the carriers is paid on a proportionate basis. On Wednesday, WorldCom MCI said it found misrepresentation of financials to the tune of $3.8 billion in their accounts of 2001. US President George W. Bush has called for a review of governance among US corporates. One reason for VSNL being owed such a large sum of money by World-Com is that inbound traffic from the US to India is 20 times higher than the number of calls made to the US from this country. This disparity in usage is largely because it is much more expensive to call the US from India. Relates Stories [] WorldCom faces fraud charges, bankruptcy [] Question mark over WorldCom's India plans [] Bush vows probe into scandal [] Banks on hook for $4.5 bn to WorldCom

    ...and after all these incidents americans still call themselves 'Patriotic'!

    What they did in the case of Enron or World-Com clearly indicates how one can get so selfish and can put country's economic stability and reputation at stake for small personal gains