Ultimatum To Basic Telecom Operators To Sign Pacts
The ministers warning came as a shock to the companies holding letters of intent for the provision of basic telecom services in six circles.
Their representatives held discussions with telecom commission officials until late last evening. The talks, which remained unresolved, are expected to continue today.
Meanwhile, the department of telecommunications officially announced that the basic telecom services licence would be made assignable.
In a press release, it clarified that the licences to private parties for providing basic telecom services would be made assignable to facilitate the securitisation of debt. The choice of a new service provider by the assignee will require prior approval of the licensor.
However, the department of telecommunications has refused to budge on the issue of interconnect charges which basic telecom companies have termed too high and unworkable.
The press release reiterated the departments stance: While interconnection terms and charges etc. have already been intimated to holders of letter of intent, the department has also confirmed that interconnection matters would fall within the purview of the Telecom Regulatory Authority of India (TRAI), under the provisions of the Bill which is already in Parliament. That Authority (the TRAI) would have the power of settlement of disputes including interconnection matters.
Earlier in the day, at a press conference here, Verma asserted that DoT would not grant any further extension to the successful bidders after today. However, it would be prepared to give more concessions to the operators with a view to remove their genuine difficulties.
The demand for waiving port charges could be considered in the light of prevailing international conventions, the minister said. But we will not accept any condition if they (private operators) impose new ones just to delay the process, Verma cautioned.
The six LoI holders are: Tata-Bell Canada for Andhra Pradesh, RPG-NTT (Tamil Nadu) Hughes Ispat (Maharashtra), Essar-Bell Canada (Punjab), Reliance-Nynex (Gujarat) and the Usha-led Techno Telecom. HFCL-Bezeq, which won the circles of Delhi, Haryana, Orissa and Uttar Pradesh (West) have challenged DoT in courts over encashment of its bank guarantees.