A note in this regard has already been prepared by the DoT and is likely to be presented to the Minister for Communications, Sushma Swaraj soon. The note has analysed the pros and cons of the revenue sharing arrangement with the private operators which if meets with the minister's approval, will be finalised to seek the Cabinet's approval. The DoT has been forced to consider this option as most companies - especially basic and cellular - have defaulted in the payment of their licence fees in the third year. In fact all these privateoperators have approached the government demanding sops like moratorium in the payment of licence fees and extensions in the licence period itself.

There is tremendous pressure from the private industry lobby on the government to resolve these issues of moratorium and extension in the licence fees at the earliest. These companies argue that it would be in the interest of the government in the long run to give a temporary reprieve to telecom companies as they would still have massive licencee fees to look forward to at least in the future. . In the case of basic services however, the government's problem has been the lack of takers from the private sector.

So far only six companies have signed the licence agreement for basic services. Circles where final licence agreements are still to be concluded include Karnataka, Delhi, Haryana, Uttar Pradesh (west) and Orissa, and Tamil Nadu. For the circles which did not receive any bids in the previous rounds, the government will have to think of new ways ofprivatising telecommunication services. It is in this regard that a revenue sharing arrangement is being considered as a serious option.