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This is an archive article published on February 6, 1999

Jagmohan boycotts telecom meet

NEW DELHI, Feb 5: With both the defaulting basic and cellular telecom operators publicly saying that they will not pay their dues, commun...

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NEW DELHI, Feb 5: With both the defaulting basic and cellular telecom operators publicly saying that they will not pay their dues, communications minister Jagmohan decided not to attend a meeting organised on behalf of all the telecom operators today.

The National Seminar on Formulation of New Telecom Policy8217; which was to be attended by other luminaries such as Iamp;B minister Pramod Mahajan, was meant to address all major telecom policy issues. External affairs minister Jaswant Singh who heads the group on Telecom was supposed to address the seminar as well, but is away in London. A White Paper on the industry8217;s problems was presented at the seminar by FICCI, CII and all the telecom associations.

While regretting his inability to address the seminar, Jagmohan had said that he was preoccupied with Parliamentary Consultative Committee8217; meeting also scheduled for this morning. However, the consultative committee meeting was scheduled to begin at 10 O8217;clock in the morning while Jagmohan was scheduled to speakat the FICCI meeting only at 1.25 pm. Members from FICCI, CII and various telecom organisations spent hours outside Jagmohan8217;s office yesterday and also waited outside the consultative committee meeting today for the minister to change his mind, but in vain.

According to sources, the real reason for the minister8217;s reluctance to attend the seminar was because it is being organised by FICCI on behalf of the Association of Basic Telecom Operators ABTO and the Cellular Operators Association of India COAI, both of whom announced to the press last week refusing to pay even 20 of their outstanding licence fee as demanded by the Department of Telecommunications. Cellular operators owe the government Rs 3,541 crore while basic operators owe the government Rs 700 crore.

Following the advice of the Attorney General Soli Sorabjee, the DoT had asked erring telecom companies to cough up at least 20 per cent of their dues to establish their bona fide8217; before the government could consider any concessions for thesector which has been complaining about the high licence fees which have rendered their projects unviable. Jagmohan8217;s stand has sent the industry into a tizzy with basic operators distancing themselves from the cellular operators. Some basic operators have now refused to join issue with cellular operators on the grounds that while the government has made changes in the Licence Agreement for basic operators by allowing internet service providers to come in, cellular operators have no such changes in the basic conditions of their contract. Therefore, the basic operators say that cellular operators have no legal grounds for not paying 20 of their dues. Sunil Mittal, chairman of FICCI8217;s telecom committee said that in his view, operators should pay up 20 of their dues as a goodwill gesture.

 

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