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Wednesday, April 29, 1998

Cable trouble 

 
The six private basic telecom operators -- Essar Telecom, Tata Telecom, Hughes Ispat, Shyam Telecom, Reliance Telecom and Bharti Telecom -- already troubled with hefty licence payments, now have an additional problem. Reports indicate that in a notification issued to all the state public work departments, National Highways Authority of India (NHAI) and the ministry of surface transport (MoST), the licencees are not allowed to lay cables on national highway land.

It is very surprising that these things were not sorted out in the licensing agreement itself. Moreover, the diktat pertaining to the removal of already laid cables (without MoST permission) at their own cost would add to the private operators' woes. The MoST proposes to levy a user fee of Rs 250 to Rs 750 per km on the private operators, to lay underground cables along highway land.

The fact that DoT does not pay any fee for laying its cables along the highway gives credence to the argument that private operators should be given a waiver. Thoughfinal rates are still to be finalised, assuming the levy cited above, the licencees have to shell out an extra expense around Rs 15 to Rs 45 lakhs.

Also operators would have to create sufficient underground cable capacity. This means catering to the requirements of the two cellular operators and one basic operator for each circle. They would be under added pressure also due to advance payments for the same. And perhaps operators would have to bear subsequent shifting costs of the cables when the national highways are four-laned. Until these things are sorted out, the tinkle of a telephone on a private basic network would remain a pipe dream.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.



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