Modi'S Ouster May Split Cell Operators' Body

The BK Modi group company, Modicom Networks _ the cellular licensee in Punjab and Karnataka _ has withdrawn from the Cellular Operators Association of India (COAI) fuelling speculation that the association is headed for a split. Modi was voted out of the chairmanship of COAI on Thursday.

Two other operators may also join Modi, sources here said, even as COAI office-bearers denied any differences between its members. Modi told newspersons here yesterday that he does not rule out a split in the association or the formation of a new one.

Modi is reported to have been forced to quit office following differences over his "handling" of the vital issue of a two-year moratorium being sought by cellular operators on payment of licence fees, besides other financial issues. Modi said these issues were critical to the survival of Indian industry and, if not addressed soon, could lead to a sellout to foreign companies soon.

 

He termed the events leading to his ouster as "unfortunate" and did not rule out formation of an alternate organisation. When contacted, COAI officials ruled out a division in the organisation and expressed hopes of modi's return to the fold.

The general body of COAI, whose electons were brought forward by a day, elected BPL managing director, Rajiv Chandrashekahar, as the new chairman on Thursday. Modi's ouster from COAI comes in wake of failure of talks with communications minister sushma swaraj in securing financial relief to the industry, whose licensing fees arrears have crossed Rs 1,300 crore. Meanwhile, in an apparent effort to placate Modi, the COAI executive vice-chairman T V Ramachandran wrote a letter, which said, "For the last eighteen months, you have worked enthusiastically and effectively in the interests of the cellular industry in India. When you took over the reins of the organisation, few in government, the media or elsewhere were convinced of the gravity of the industry's situation or the legitimacy of its demands."

Today, the issues concerning us have moved close to the top of the government's agenda and the press has a far greater grasp of the issues confronting the cellular industry." "In the general body meeting of July 30, all members have unanimously recognised that, for this important accomplishment, you deserve the lion's share of the credit and for that, sir, we are deeply in your debt. We look forward to your continued guidance and support in our efforts," he concluded.