The Indian Express

Return to Story Page
To print: Select File and then Print from your browser's menu

Telecom operators accept court terms on revenue-sharing plan

Siddharth Zarabi

New Delhi, Aug 8: Majority of the private cellular and basic telecom players have decided to give an undertaking to the Delhi high court that they will have no objection to the ratification of the revenue-sharing package by the next Parliament. This clears the uncertainty over implementation of revenue sharing as the high court has demanded such undertakings from the operators as a pre-condition to its approval of the package. The court is scheduled to hear the case on Tuesday.

Attorney General Soli Sorabjee is slated to meet operators on Monday to thrash out the finer details of the undertakings. However, the industry will make a strong pitch for some safeguards in the form of an assurance that if Parliament does not approve the package, operators will then be able to revert to the old system without further problems. Sources in the cellular industry said the initial reluctance on behalf of some companies to give the undertaking had been overcome after protracted negotiations. At the heart of the matter isthe fear of certain operators that legislative approval for the package may not come easily. Sources said industry people have already started making the rounds of major political parties in an attempt to inform them of the necessity of the telecom revenue-sharing package.

Industry representatives said though they had "full faith" in the Parliament, they could not give up all claims related to the arbitration notices on grounds of delays in SACFA (spectrum allocation), environmental clearances, TEC and other documented cases where projects got delayed due to Government agencies taking time in awarding the necessary approvals. This issue figured prominently in meeting that the AG held with lawyers of the cellular and basic service providers on Sunday.

Industry sources were at pains to explain their stand. "The revenue-sharing package is not an easy one, we have to fulfil a host of conditions including withdrawing all legal cases against the DoT, pay a further 15 per cent of arrears in a week's time,enhance and furnish additional bank guarantees in less than three months time, make full and final payment by January 2000 as well as give up our duopoly rights", said sources. Therefore, there is absolute necessity to have some safeguards to protect our interests as the Government cannot ignore the fact that we have also suffered on account of factors directly under its control", added sources.

Counsel for the Cellular Operators Association of India (COAI) and Association of Basic Telecom Operators (ABTO) will raise these issues before the division bench of the Delhi high court on Tuesday.

Earlier last week, the Delhi high court had suggested that it will grant its approval to the telecom revenue-sharing package in case the operators were willing to give an undertaking to the effect that they will all legal cases and subject the package to Parliamentary approval. Initially there was some reluctance on behalf of the operators, with a couple of circle cellular operators dissenting with the idea. Sourcessaid the issue was finally settled after stormy meetings between the operators that culminated in statements from the COAI and ABTO agreeing to accept the jurisdiction of the Parliament.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.

Net Express

------------------------------------------------------------

This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.

------------------------------------------------------------