Govt. issues norms for GMPCS

By Our Special Correspondent

NEW DELHI, NOV 2. The stage is set for the entry of private satellite-based mobile services in the country with the Union Government today releasing the guidelines for awarding licences to operate global mobile personal communication by satellite (GMPCS) services in India.

The advantage of this mobile phone, which is bulkier than the conventional cell phone is that the subscriber will have one number irrespective of his location. It can support voice, data, fax, messaging and the like, although the cost per call will be many times more expensive than land line or cellular charges. Over time as competition sets in, call charges may go down.

The one-time entry fee has been kept at Rs. 1 crore. In addition, the company will have to pay 10 per cent of its income as revenue share to the Central Exchequer. A bank guarantee of Rs. 1 crore valid for two years will also be submitted before signing the licence agreement.

At present, there is only one entity offering a couple of variants of satellite-based phone services through its companies. Another international company, Motorola-promoted Iridium collapsed while some others have delayed their worldwide launch plans. At the time Iridium was allowed to operate the services, the Government had pulled out all stops despite the fact that a number of crucial parameters were yet to be finalised.In India, Mr. Subhash Goyal's Zee Group and Mr. Rajiv Mehrotra's Shyam Telecom are planning to launch satellite-based phone services. They have already been given letters of intent (LoI) by the Government.

The applicant will have to be an Indian company and the foreign equity has been restricted to 49 per cent during the entire licence period of 20 years which is further extendable by 10 years. The crucial gateway earth station along with control and monitoring facility will have to be located in India. The Government will designate an authority for operation and maintenance of these gateways. The companies are expected to provide monitoring facilities and security features to security agencies. This is not a new condition since intelligence agencies are being allowed to monitor calls being sent and received by subscribers to private cellular and basic phone services.

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