Communications Minister Jagmohan and chairman of the Group on Telecom Jaswant Singh told mediapersons that the government was committed to having a strong and independent regulator. The Cabinet decided to vest the Telecom Regulatory Authority of India (TRAI) with arbitration powers to settle disputes between the government and other service providers.

The policy further states that TRAI's recommendation would be sought by the government (as licenser) on the number and timing of new licences before taking a decision on the issue of such licences in future.

However, TRAI will not be assigned the functionof licenser or policy-maker as such functions are to be retained by the government in its sovereign capacity.

The Department of Telecom/Mahanagar Telephone Nigam Limited (MTNL) have been allowed to become the third operator in cellular circles. The entry of the fourth player would be on the basis of recommendation of the TRAI.

The Government in its role as a service provider would be at par with other service providers, according to the new telecom policy. The Department of Telecom and MTNL would be required to pay a licence fee after corporatisation of the department.