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Journalism of Courage
NEW DELHI, JULY 8: Highly placed sources in the Ministry of Communications today said that there is “no commitment” on the figure of 15 per cent for private companies sharing their revenue with the government. This clearly indicates that the Ministry was not taken into confidence on the issue and hopes to negotiate this figure even now.
The fresh differences have arisen even before the minutes of Tuesday’s Cabinet meeting clearing the transition of private telecom companies from the licence fee regime to a revenue sharing arrangement could be finalised.
Sources also say that even the Finance Ministry has misgivings on the issue of 15 per cent revenue share which has been mentioned in the Cabinet note as this may set a precedent on the basis of which the Telecom Regulatory Authority of India (TRAI) will suggest their recommendations.
The Cabinet had said the TRAI would be asked to recommend a revenue sharing percentage by July 31. If this deadline is not met, an interim revenue share of 15 per centwould be charged, a fact which was even announced by the Information and Broadcasting Minister Pramod Mahajan while briefing the media after the Cabinet’s meeting last Tuesday.
Highly placed officials in the Communications Ministry also clarified that after the announcement of the transition of telecom companies, fresh agreements would have to be signed with them on some of the modified terms and conditions.
Sources said that the new policy cleared by the Cabinet, would usher in a new era in the telecom sector. Stating that more competition and new entrants coming into the field would be a direct fall-out of the Cabinet decisions. Before the end of the year, the government would go for a fresh round of bidding for the vacant circles where there are no private companies so far, as well as for fresh entrants as per the new rules of multipoly. “While in cellular at least one private entrant and the Department of Telecommunications/ MTNL would enter, in the area of basic services the number would bedetermined after the TRAI recommendations are received,” explain sources.
Sources also said that for companies whose licences had been terminated, there was scope to allow them to correct the situation based on certain conditions. Sources said that the government would take all steps to ensure the health of the telecom sector.
