Financial Daily from THE HINDU group of publications
Tuesday, Jan 29, 2002
Financial Daily from THE HINDU group of publications Tuesday, Jan 29, 2002 |
|
|
|
|
|
Home Page
-
Telecommunications Info-Tech - Telecommunications Reliance signs licence for long-distance G. Rambabu
NEW DELHI, Jan. 28 RELIANCE Communications Ltd has signed the licence agreement with the Department of Telecommunications (DoT) for commencing national long distance (NLD) services in the country. This makes it the second private sector operator, after Bharti Telesonic Ltd (BTSOL), to have signed the licence agreement with DoT. While Bharti launched its services on January 26, Reliance expects to launch its services by end-May. According to the company officials, the intention is to launch the NLD and basic services across the country in one go, rather than in a piecemeal fashion. Two other companies — Videsh Sanchar Nigam Ltd (VSNL) and the Delhi-based Connecting Networks Ltd — which hold the letter of intent (LI) from DoT for launching the services are yet to decide on a suitable date for picking up the licence. The LI held by Connecting Networks expired on January 23. Following a request made by the company to DoT, it had now been extended by a couple of months, the sources said. It may be recalled that VSNL, despite being a public sector company, and being in direct competition to BSNL, was allowed by the Government to operate NLD services as part of the compensation package, for terminating its monopoly on international long distance services two years ahead of schedule. VSNL's monopoly ends in April 2002. Reliance officials said the original plan was to wait for VSNL's disinvestment, since it is one of the strongest bidders, and then decide on picking up a licence. However, following the uncertainty over the disinvestment being completed this fiscal, the company decided to sign the licence now. "In case Reliance is successful in buying the Government stake in VSNL, then a decision will be taken to merge its NLD operations with that of VSNL,'' the officials said.
Send this article to Friends by E-Mail
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2002, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|