Nld Services Provides Guidelines Laid Down

The combined net worth for the companies entering the NLD services has been fixed at Rs 2,500 crore. The fee for entering the domestic long distance market has also been fixed at Rs 500 crore, which the companies need to pay in five phases, with the completion of each pahse.

The fee for the operators has been fixed as 10 per cent of the revenue and contributions towards the USO fund with a cap of 15 per cent. This will be in addition to the fee for the use of spectrum and wireless telegraphy equipment.

As per the guidelines for the NLD services, the licence for the NLD has been fixed initially for a period of 20 year, with an option to extend it by 10 years for inter circle long distance operations.

 

Under the guidelines, companies will also be allowed to make their own arrangements for right of way (ROW) and the government will bring its notifications for bringing NLD licences at par with DTO. The national long distance operators (NLDO) will be allowed to carry intra circle traffic with mutual agreements with FSP from and to a mutually agreed point.

The foreign equity in the applicant company has also been fixed at 49 per cent with investment in the equity of the applicant company by an non-resident Indian or overseas corporate bodies and international funding agencies counted towards the foreign

equity.

The government will not fix any restriction on the number of players in NLD. Besides, interconnection between the networks of service providers will be as per the stipulations prescribed by the Telecom Engineering Centre. The terms and conditions of interconnection points out that interconnection and technical aspects will be mutually agreed upon between the service providers.