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One-time entry fee for basic operators

Surjeet Das Gupta in New Delhi | September 26, 2003 10:08 IST

The Telecom Regulatory Authority of India does not intend to compensate cellular operators in a universal telecom licence regime.

"Cellular operators, while moving to revenue sharing, had given a commitment to allow unrestricted competition. Why should we give them compensation?" a Trai official said.

Trai is expected to recommend that fixed-line operators be allowed to provide cellular services after paying an entry fee, benchmarked to the fourth round of cellular licences, which went for Rs 1,700 crore (Rs 17 billion).

Under the new licence regime, Trai is expected to allow companies that have licences to operate basic, cellular, and national and international long-distance services, to migrate without paying extra.

The regulator has, however, not decided whether the unified licence will include long-distance services. They might be if service providers seek it, but that will involve recalculating the migration package.

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