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Basic firms may withdraw case on entry fee

Thomas K Thomas in New Delhi | November 01, 2003 11:14 IST

Private basic operators are likely to withdraw the case filed in the Supreme Court against the levying of an entry fee on wireless-in-local-loop limited mobility services.

The Association of Basic Telecom Operators had approached the apex court on October 13 to pre-empt the imposition of an entry fee by the Telecom Regulatory Authority of India.

Though Trai has imposed an entry fee on basic operators offering WLL services, its impact has been negated by the decision of the group of ministers on telecom approving unification of cellular and basic licences.

"Most basic operators will migrate to offering mobile services. The entry fee for limited mobility, hence, does not have any meaning as the amount will be adjusted while paying for an unified licence," a senior executive with a basic operator said.

According to the Trai proposal, cleared by the group of ministers, Reliance will have to pay Rs 221 crore (Rs 2.21 billion) to offer WLL limited mobility services.

Tata Teleservices, the other major WLL service operator, will have to pay Rs 129 crore (Rs 1.29 billion). However, this amount will be adjusted while calculating the fee for the unified licence.

For instance, while Reliance has been asked to pay around Rs 1,578 crore (Rs 15.78 billion), including a penalty of Rs 485 crore (Rs 4.85 billion), to offer full mobility, the company will have to actually pay only Rs 1,357 crore (Rs 13.57 billion), if it pays the entry fee for WLL limited mobility.

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