Speaking at the seminar on ISP and the New Telecom Policy, Jagmohan said that the only way out of the impasse is for existing operators to move to revenue-sharing regime and allow competitive bidding. Independent authority can evaluate the infrastructure put in place by the players, which can be adjusted latter, he said.

"Any solution has to be within existing rules and regulation," he added. He asked the industry to come out with a solution which will satisfy most players.

He said that the attorney general had endorsed his stand and that entrepreneurs, other than those existing, must also be given a chance to enter the market.

He justified the government's stand on strict implementation of contractual obligations with private basic and cellular operators.

Taking the industry to task, Jagmohan said, "wereyou (industry) not aware of the tender conditions." He said while the world was moving towards encouraging the forces of competition, contrarily the telecom industry in India was asking for government intervention and concessions.

Jagmohan said several companies had not even paid 20 per cent of the licence fee. "Is there a similar example of this kind anywhere in the world? I am not convinced that all telecom operators are losing money," he said. The industry must come up with a creative solution within the framework of rules and regulations, he reiterated.

Jagmohan said that his change of portfolio from telecommunication was not due to his tough stand vis-a-vis defaulting private telecom operators for payment of their licensing dues.

Asked whether he was paying the price for being tough with private telecom operators, Jagmohan said "nothing of that sort." He parried queries over what the government stand should be on defaulting operators saying "you ask this to the new minister."

Following Jagmohan'sshift to urban development ministry, the charge of communication ministry is presently with Prime Minister Atal Bihari Vajpayee. Jagmohan had extended the deadline for payment of 20 per cent licence fees by the defaulting companies by over a month till March following prime minister's intervention after the telecom operators appealed to Vajpayee.

However, some of the operators had moved court against the department of telecom's (DoT) move and a few of them lost their cases.