HC clears telecom policy only after setting terms

The package was to come into effect from August 1 but had been delayed due to the undertaking given by the Government before the HC that it would maintain status quo in the issue till August 10.

The bench said if the policy was disapproved, the rights and equity of the operators would be decided as per their existing contracts with the government before the new policy8217;s coming into force.

The interim order was pronounced by the bench after the Cellular Operators Association of India COAI and Association of Basic Telecom Operators ABTO agreed that each operator would give an undertaking to the court to this effect.

The court also said that this order would not bar the Election Commission EC from quot;passing such orders as the Commission considers necessary to be passedquot;.

Attorney General Soli Sorabjee said it was rather surprising that the EC gave legal advice to the HC as to how it should proceed with the petition filed by Delhi science forum challenging the validity of the telecom policy.

The bench told Sorabjee that the Government would issue licences to the operators only after they give an undertaking in this regard.

Sorabjee said the Government would give the licence after getting the undertaking given to the court was incorporated in the agreement.

The bench clarified that Tuesday8217;s order was an interim one and quot;the court has not gone into the merit of the petition, neither approved, vindicated nor disapproved it.quot;

quot;Each and every licencee shall give an undertaking to the court on an affidavit that the implementation of the package is acceptable to them subject to approval by the council of ministers after the constitution of the 13th Lok Sabhaquot; and the package would not come into force if it was disapproved subsequently by the Lok Sabha, the bench ordered.

The operators said their undertakings filed before the court would be valid till December 31, 1999.

However, the bench ordered, quot;every licencee to further undertake before the court that in case council of ministers or Lok Sabha disapproves, they shall not claim any right or equity under the same new package.quot;

The Opposition parties had termed the new package by which the operators were to migrate from the present licence fee regime to revenue sharing as a quot;bail outquot; package and had termed it as the scam of the millennium.

The Government had defended the policy saying it was to revive an important segment of communication industry and to infuse competition and better deal for the consumers.