Communication and IT Minister Arun Shourie said on Saturday that the penalty clauses in the telecom licences would be reviewed to make them more stringent and it would be mandatory for companies to comply with them.

"Most of the companies (telecom service providers) get away without meeting the obligations as promised by them while signing the licence agreement... this needs to be changed," Shourie said on the sidelines of a WLL service launch by Mahanagar Telephone Nigam Ltd.

Department of Telecommunication and ministry of communication and IT have already started reviewing the penalty clauses Shourie said, adding the final decision would be taken soon in this regard.

"I would also like to take a legal view on this matter," he said.

Earlier, while launching the new limited mobility services of MTNL, Shourie said the two telecom PSUs, MTNL and Bharat Sanchar Nigam Ltd, would be given all freedom to compete with the private companies in terms of tariffs as well as quality of services.

He also urged all service providers in the private and public sector to out do each other by providing better services and not by smearing rivals.

On the controversies in the telecom sector, Shourie said the issues, which had cropped up in the sector in between, were now being taken to the right fora which are Trai and TDSAT.