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BSCAL

Attorney-general Soli Sorabjee's package for basic and cellular telecom operators, which permits a shift for existing operators from the licence-fee regime to revenue sharing, will be effective from a prospective date. This is contrary to the perception that the effective date would be April 1.

Sorabjee, who earlier had a different view on the subject, has given a detailed submission justifying his views.

The government is planning to make Sorabjee's views public to lend transparency to the move that has broken the logjam over the new telecom policy.

"This is necessary since the solution, due to some misplaced perceptions, should not take the debate somewhere else. All the more because there are suggestions that a sweet-heart deal is being worked out," sources said.

 

These apprehensions are based on the flak that came from most political parties for the shifting out of telecom minister Jagmohan in a Cabinet reshuffle.

Senior government officials revealed that Sorabjee's submissions would now be formalised and put up soon for Cabinet approval. Sources said the government would also retain Sorabjee's suggestion that operators should be given an option to either continue in the existing licence fee arrangement or move to the revenue sharing regime.

"The concessions that are being worked out will be available in a competitive environment. If you wish to retain the restricted competitive structures, then the old arrangement can be adhered to. But frankly, given the financial difficulties, few operators are likely to stay on," officials remarked.

Officials elaborated that once the package was formally approved by the Cabinet, private operators would have to withdraw the court cases. "There will obviously be no need to keep the cases," they added.

The Cabinet is also expected to refer to the Telecom Regulatory Authority of India (Trai) the exact details on the percentage of revenue that will be shared with the government.

Officials c

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First Published: Nov 24 1999 | 12:00 AM IST

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