Secy Panel Clears Basic Services Award To Telelink

The committee of secretaries (CoS) of the Union government has cleared the award of Rajasthan basic telecom services licence to Telelink Networks, the highest bidder for the circle. The decision is likely to be presented at this weeks meeting of the Cabinet Committee of Economic Affairs (CCEA).

Last week, the CCEA had directed the CoS to examine the issue. Chaired by the cabinet secretary, the CoS has secretaries from key departments.

The award of the Rajasthan basic telecom licence has been pending for almost 20 months now. Telelink is a consortium comprising Shyam Telecom, ARM Ltd, Harris Corporation of the US and Guangdong PTT of China.

 

The award of the licence to the company has taken so long because of a technical flaw in its financial bid (which was disputed by the company) and the presence of the telecom scam-tainted Hyderabad-based ARM Ltd in the consortium. The Telecom Commission had earlier cleared the Telelink case.

Sources said the CoS decision was taken in view of the huge licence fee quoted by Telelink. The consortiums quote of Rs 1,110 crore, it was felt, would not be matched by others if the circle was offered for rebidding.

If awarded, Telelink will be the ninth private company to enter into basic telecom services. Two companies Bharti Telenet and Reliance Telecom have signed licence and interconnect agreements with DoT. DoT has given five companies Hughes Ispat, RPG-led Basic Teleservices, Tata Teleservices, Essar Commvision and Usha groups Techno Telecom letters of intent (LoIs) to start basic telecom services in six circles. Four of these firms have challenged a DoT move to encash their bank guarantees. Finally, Himachal Futuristic Communications Ltd (HFCL) holds the LoI for four circles, but is fighting DoT in court.