CMs' support enlisted in telecom war

By Our Special Correspondent

NEW DELHI, APRIL 6. The dispute between cellular and basic phone service licensees has intensified with both sides hurling charges against each other on the question of allowing fixed service providers (FSPs)to offer ``limited mobility'' through the wireless in local loop technology.

The cellular industry is cut up over ``alterations'' in licence terms and conditions for basic phone companies and granting of a ``valuable and scarce national resource like spectrum, free, on a completely arbitrary and undefined first-come-first-served basis''.

The FSP lobby believes that the granting of limited mobility should not be treated as a major issue because a level playing field had already been created for the cellular industry by reducing their revenue sharing percentage and also allowing them to provide fixed services. The basic phone companies appeared to have enlisted the support of eight Chief Ministers who have argued that cellular companies were allegedly blocking the liberalisation process and they should be asked to withdraw a case filed against the Government's basic phone policy.

The Chief Ministers of Tamil Nadu, Andhra Pradesh, Karnataka, Chattisgarh, Madhya Pradesh, Rajasthan, Gujarat and Maharashtra are said to have written to the Prime Minister pleading for early issuance of basic phone licences.In response, the cellular industry has enlisted the support of Karnataka and Maharashtra Chief Ministers who had supported basic phone companies barely a few weeks ago.

The Karnataka Chief Minister, Mr. S.M. Krishna, in his first letter in support of fixed service providers, had expressed his apprehension that since the matter was pending for a long time with the Government, many basic phone operators might withdraw their applications.

In his second letter, this time in support of the cellular industry, he states that ``it is important that any decision regarding mobility for FSPs be taken keeping in mind the significant investments already made by the existing cellular sector.''

On the other hand, the Tamil Nadu Chief Minister, Mr. M. Karunanidhi, has stated that ``the Government of Tamil Nadu attaches top priority to the rapid provision of reliable, basic telecom infrastructure throughout the State as this is a pre- requisite today for our socio-economic development.

Accordingly, we would request you to intervene in this matter and ensure that all pending applications for licences to basic service operators in Chennai/ Tamil Nadu circles are cleared expeditiously.''

The Andhra Chief Minister, Mr. Chandrababu Naidu, has asked for quick settlement of procedures because the State Government's objective of providing Internet dhabas in rural areas and telecom centers in the rural areas in a short time would suffer a setback if the basic service operators are not given``5 mhz plus 5 mhz'' frequency.

Reacting to the letters sent by the Chief Ministers to the Prime Minister, Mr. Atal Behari Vajpayee, cellular companies have pointed out that ``the so-called letters from the Chief Ministers and MPs do not in any way ask or encourage the Ministry of Communications to violate law, policy or the laid down norms of licencing.

In fact, at least two Chief Ministers have written subsequently to the Ministry to clarify their position that the DoT should not jeopardise the existing investments made in the cellular sector''.

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