Bharti-Axa insurance venture by June-end

Bharti group chairman Sunil Mittal on Tuesday said the company would begin its life insurance venture with French major Axa by June end.

"We have got the approval of the Foreign Investment Promotion Board. Licence from insurance regulator IRDA is awaited. We expect to start the insurance venture by June end," Mittal told reporters.

Both companies had signed an agreement in August 2005 to set up Bharti Axa Life Insurance. The FIPB had recently cleared Axa's proposal to infuse Rs 24.55 crore for its 26 per cent stake in the proposed venture.

When asked about the high licence fee in the telecom sector, Mittal said this must be removed completely over the next three years from all segments within the sector "" basic, long-distance and mobile services.

"We are already paying a high service tax. Licence fees need to be taken off completely and preferably in three years' time," he said.

According to Trai estimates, the telecom sector pays between 25-30 per cent of its total revenues as levies. Mittal had earlier said the Budget was a disappointment for the sector as the finance minister had failed to consider the industry's demands for a reduction in the tax burden.

On Access Deficit Charge, a levy paid by private operators to BSNL, he said the issue had been addressed. "It has already been taken care off."

Commenting on the regulator's proposal to introduce number portability facility, Mittal said: "Number portability should be introduced for the three crore fixed line customers and then the mobile customers or together. But to start with mobile customers is not in the best interest."