Cabinet allows multipoly in basic, cellular

Communications minister Jagmohan and chairman of the Group on Telecom Jaswant Singh told reporters that the Government was committed to have 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 Trai8217;s recommendation will be sought by the Government as licensor on the number and timing of new licences before taking a decision on the issue of new licences in future.

Trai will, however, not be assigned the function oflicensor or policy-maker as such functions are to be retained by the Government in its sovereign capacity.

The department of telecommunications DoT/Mahanagar Telephone Nigam Ltd MTNL have been allowed to become the third operator in cellular circles. The entry of the fourth player will be on the basis of Trai8217;s recommendation.

The Government, in its role as a service provider, will be on par with other service providers, according to the new telecom policy. DoT and MTNL will be required to pay a licence fee after corporatisation of the department. DoT will be reimbursed an amount equivalent to the licence fee as a budgetary subsidy which, according to the Government, is imperative in view of its national and social obligations.

The national long-distance service will be opened to private operators for competition with effect from January 1, 2000. The modalities will be announced in consultation with the Trai by August 15, 1999.

The existing networks of public and private power-transmissioncompanies, railway, Gas Authority of India, Oil amp; Natural Gas Commission, etc, will be allowed to be used commercially for long-distance data communications with immediate effect. These networks will be opened up for national long-distance voice communications from January 1, 2000.

The Government will set up an empowered inter-ministerial group called the Wireless Planning Coordination Committee WPCC as part of the communications ministry to review the spectrum allocation and efficient-spectrum managment. The WPCC will decide on the spectrum fee.

Cellular Mobile Service Providers will be allowed to provide PCO and data services under the new telecom policy.

DoT will be corporatised by 2001. As a precursor, a separate department of telecom services will be created for undertaking policy and licensing functions.

A universal access levy will be imposed as a percentage of the revenue earned by all the operators. This will be used to promote rural telephony, said Jagmohan.

Recognising the revolutionarypotential of convergence of information technology, telecom, television, and consumer electronics, the new telecom policy allows cable service-providers to provide two-way voice and data comunication after seeking licence for fixed telecom services.

The policy also proposes to review the Indian Telegraph Act, 1885, and the Indian Wireless Act, 1933, and replace them with forward-looking statutes.

While voice on Internet will not be allowed, the Government proposes to continuously review and monitor technological innovations.