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ALL IN THE lOOP

He allowed fixed-line service providers to provide limited mobile services within a circle,termed the wireless local loop

Ram Vilas Paswan

1999-2001

He allowed fixed-line service providers to provide limited mobile services within a circle,termed the wireless local loop WLL. Reliance Infocomm,now Reliance Communications,used this to provide full mobile facilities to fixed-line users. Existing mobile service providers,including Bharti Airtel,protested as the fee they had paid to provide mobile services was higher than that paid by fixed line service providers Tata and Reliance. Paswans move benefited Tata and Reliance,particularly the latter which went on to provide full mobility.

Arun Shourie

2003-2004

When he took the reins,the WLL policy was still rocking the industry. Shourie is credited with introducing a level playing field with the Unified Access Service Licence,which became the cornerstone of the telecom policy. He erased the lines between fixed line and mobile services by bringing all under a single licence regime. He also levied a penalty on Reliance for having provided mobile services without a licence.

A move by Shourie helped mobile telephone services spread in areas so far considered unattractive for lack of business prospects. For such circles,which had not attracted bids at a government auction,Shourie allotted licences at a 2001 auction price and the move encouraged competitive mobile telephony there.

Shouries tenure also saw licences being given out to the Tatas for nine circles without an auction,the first time fresh licences had been so allotted. The move was largely viewed in the industry as favouring the Tata Group. Pradip Baijal,then Telecom Regulatory Authority of India chairman,had made the recommendation through a DO to the Department of Telecommunications. After his retirement,Baijal joined consulting firm Noesis,promoted by the Tata Groups PR consultant Niira Radia.

Shourie also mooted a proposal for hiking the FDI limit in the telecom industry from 49 per cent to 74 per cent. When the proposal was eventually carried through,GSM players raised the FDI stake in their companies.

Dayanidhi Maran

2005-2007

He reduced the national long-distance entry fee and the revenue share fee from 15 per cent to 6 per cent. UASL holders or telecom companies were also allowed to offer Internet telphony,Internet and broadband services. These moves ensured not only better profits for telecom operators but also variety in terms of the services to mobile users. Another milestone in Marans tenure was BSNLs IndiaOne Tariff plan,which boosted its mobile telephony services.

A Raja

2007-2010

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He became the minister at a time when mobile telephony was furiously fuelling Indias growth story. In a move ostensibly to introduce more operators and break the monoply of the existing ones,he allotted licences and spectrum to some companies on a first-come,first-served basis,allegedly in violation of norms and disregarding the PMO. Companies given licences included Unitech,Swan Telecom,Loop Telecom,Allianz Infratech,S Tel and Videocon. He also introduced dual technology and provided spectrum cheap to Reliance Communications and Tata Teleservices. The CAG estimated his moves cost the country Rs 1.76 lakh crore.

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  • Arun Shourie Dayanidhi Maran Ram Vilas Paswan
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