New Delhi, May 30: In response to the repeated pleas by basic telecom service providers, Telecom Commission chairman AV Gokak said there would be some relaxation in the effective date of licence for calculating penal charges.

"Since in the regulatory frame it takes some time for the licence holders to get all clearances, the commission has decided to extend the effective date for licence so that the party is given relief," said Gokak while addressing a press conference here on Friday. He did not make the exact extension period clear but said the commission has been authorised to take a developmental approach.

On invoking of bank guarantees, WPC charges and performance condition, he said relief would be available to the licence holders.

Gokak welcomed TRAI's suggestion that the operators should try to settle their disputes with DoT through negotiations as it was a faster method to solve problems. He said DoT was examining the TRAI order but "I welcome the observation made by TRAI that the operators should first try to find a solution through negotiation."

He said DoT was trying to reach an agreement with the basic operators.

Essar, licence holder for Rajasthan, was likely to sign the agreement soon, he said. He disclosed that the company had agreed to most of the points made by DoT. In the case of RPG, the licence holder for Tamil Nadu, he said it will take some time for the company to sign the agreement. As involved its partner and the Government of Japan, it would take them time to settle.

These companies had gone to the court against DoT, he explained. However, he was not very sure about Hughes Ispat, licence holder for Karnataka and Maharashtra. "We have made our stand clear. It is now left to them to respond."

Gokak, when asked how soon the commission would take a decision on the VSNL-BT tie up proposal said, "I do not want to take any decision in haste. There are some issues to be resolved and it is difficult to say how soon these matters will get cleared." In response to another query on the continuing clash on the jurisdiction of TRAI and DoT, he said, "DoT as a service provider is under TRAI. At the same time it will have all the rights of other operators".

Gokak said DoT was ready with the final draft of the tripartite agreement and there would be one last meeting between the service providers and the commission on the subject in June. "We have finally drafted the clause on assignability, arbitration etc. Now it is their turn to sign or reject. There is no point in holding endless parlays. Now we will leave it to the cabinet," he said.

Gokak said DoT was studying the TRAI pronouncement rejecting DOT's contention that the regulatory authority had no jurisdiction to adjudicate on issues covered under arbitration clause of licence agreement between the department and a service provider.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.