Friday, January 5, 2001
fesub.gif (4328 bytes)
Full Story
fe.gif (834 bytes)
India's first e-business paper
flnews.gif (5153 bytes)
Search FE
-
Download
BSE Quotes
NSE Quotes
-
 

Govt to seek 50% bid amount in advance from cellular players 

PRESS TRUST OF INDIA  
New Delhi : The government is understood to have decided to ask prospective licence seekers to be the fourth cellular player in a circle to cough up up to 50 per cent of bid amount to ensure that non-serious bidders were checked.The decision would be part of the guidelines to be announced on Friday, highly placed official sources said here.

The guidelines for basic as well as cellular operations, aimed at promoting competition for benefiting consumers, would also seek to ensure a level-playing-field between public and private telecom players. "We had faced a lot of problems earlier when the players bid very high amount, but later failed to pay the licence fee which led to migration to revenue sharing regime from fixed licence fee structure," they added.

Asked about the fixation of licence fee or bid amount to avoid any arbitrary level, sources declined to comment saying the guidelines would be incorporating all these details.

As of now there are two cellular operators in each circle with the third operator being either Mahanagar Telephone Nigam Ltd (MTNL) in Delhi and Mumbai or Bharat Sanchar Nigam Ltd (BSNL) in the rest of the circles.With regard to basic telephone services guidelines for new entrants as well as existing players, sources said there would be unlimited competition and a reasonable one-time entry fee. Sources also said that the guidelines would provide for allowing basic operators to franchise operations in rural areas for increased penetration as well as for giving flexibility to licensees to make their operations viable. The licensee would, however, be responsible for meeting all terms and conditions of the licence.

Sources said that the guidelines would be kept flexible enough to incorporate component of controversial issue of allowing limited mobility as and when TRAI submits its final recommendations to the government. With regard to allocating spectrum for additional cellular operators, the government is believed to have decided to consider case by case depending on the availability.

Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.

- Lead Stories | Corporate | Infrastructure | Commodities | Economy/Finance | BSE Today | NSE/ Markets | Strategy | Convergence | After Hours top.gif (150 bytes)Top
flame.jpg (1068 bytes) © Copyright 1999: Indian Express Newspaper(Bombay) Ltd. All rights reserved throughout the world.
This entire edition is compiled in Mumbai by The Indian Express Online Media Limited, a division of
The Indian Express Group of Newspapers. Managed by The Indian Express Online Media Limited and hosted by CerfNet.