FLAG Telecom, a Reliance group entity, will initiate arbitration proceedings against Videsh Sanchar Nigam Limited (VSNL),alleging that the Tata Group company was blocking access to the FLAG Europe Asia (FEA) cable at the latter's landing station in Mumbai. The proceedings will be initiated under the provisions of the construction and maintenance agreement. The arbitration is to uphold FLAG's right to access the available capacity on the FEA cable and to undertake an upgrade on the cable at the Mumbai landing station which is controlled by VSNL.

Earlier, VSNL had accused FLAG of unlawful upgradation of the FEA cable and had written to TRAI, citing fears of a diversion of the FEA cable to a landing station owned by Reliance in Mumbai.