DoT gave a rude shock to private operators when it told them recently that the provisions in the new telecom policy allowing cellular operators to provide PCO and other value-added services would be applicable only to new service providers and not existing operators.

Government sources said at least one cellular operator -- Koshika Telecom -- had been issued a fresh notice asking it to discontinue its PCO services. Koshika, which has the cellular licence for Uttar Pradesh (east and west), Bihar and Orissa circles, runs over 2,500 PCOs. This is the second time in the last six months that Koshika has been asked by DoT to stop PCO services.

Koshika Telecom chairman Vinay Rai refused to comment on the issue.

The DoT move seems to be in utter disregard of the nationaltelecom policy 1999 provisions as the group on telecom headed by external affairs minister Jaswant Singh had introduced a provision following representations by the private sector to clear any confusion over the issue.

The new telecom policy states cellular mobile service providers "shall provide in their service areas of operation all types of mobile services, including voice and non-voice messages, data services and PCOs utilising any type of network equipment, including circuit and packet switches".

However, DoT has taken a view that since Koshika is an existing service provider, the new policy cannot be deemed to be applicable to it and hence it is not eligible to utilise its licence to offer PCO services. The notice despatched by DoT has also repeated its threat of cancellation of licence if the company did not pull out of these services.