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GoT finalises draft telecom policy

The Group on Telecom's final meeting has approved the draft telecom policy, which envisages sharing revenue on a prospective basis for new licensees, separation of DoT's service provider function and further strengthening of the Telecom Regulatory Authority of India.

The GoT report, which will be submitted to the government by March 31, will be put up to the cabinet soon thereafter for its approval.

The group, it is claimed, could not arrive at a consensus on the line of action to take on the existing licensees.

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The meeting, which lasted for two-and-a-half hours, was held in a conference room in South Block, New Delhi.

It was attended by External Affairs Minister Jaswant Singh, PMO Secretary N K Singh, Planning Commission Member Montek Singh Ahluwalia, Law Secretary R L Meena, Telecom Secretary Anil Kumar, National Informatics Centre Director-General N Seshagiri and Sudheendra Kulkarni, director, communications and research, PMO.

The Union government's sub-group on telecom had favoured a revenue sharing agreement pledging between 0.3 and 15 per cent of the gross revenues of telecom operators to the exchequer.

The draft discussion paper for the telecom policy submitted by the sub-group on January 23 had suggested that the operators be required to pay a one-time entry fee, plus a licence fee based on revenue sharing.

The paper suggested that the entry fee and revenue sharing arrangements for different areas be recommended by the Telecom Regulatory Authority of India before June 30.

Telecommunications Minister Jagmohan told the meeting that TRAI's decision is at cross-purposes with the recommendation of the Parliamentary Standing Committee that has favoured expanding the telecom network to backward and poorer regions by offering low tariff to these areas.

"The differences have been resolved and we are going ahead with a new policy," an aide in the government said. "You will know about it soon," said Jagmohan on emerging out of the meeting.

He refused to even confirm or deny whether a decision was taken on any of the issues that include the licensing policy.

Asked if there were differences on the issues at the meeting, Jagmohan said, "Why do you talk about differences when I am saying you will know about the decision soon?" Almost all private telecom operators have put on hold their financing plans and financial institutions have expressed their hesitation to lend because they are awaiting the new telecom policy scheduled to be announced by the government before March 31.

- Compiled from the Indian media

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