Financial Daily from THE HINDU group of publications
Friday, Feb 18, 2005

News
Features
Stocks
Port Info
Archives
Google

Group Sites

Home Page - Economic Offences
Info-Tech - Telecommunications


DoT to act tough on illegal routing of calls

Thomas K. Thomas

New Delhi , Feb. 17

THE Department of Telecom is formulating a new policy to curb illegal use of mobile operators network. The idea is to impose a stiff penalty of Rs 50 crore on every mobile operator whose network is used for illegal routing of calls.

DoT will also have the option to cancel the licence if any operator is found to be defaulting more than 10 times. Initially DoT will impose additional performance bank guarantee if any operator is found to be violating the routing plan more than three times.

The operators will also be held responsible for offences committed by any of their subscribers. Tightening the screws further, mobile operators will be asked to conduct special verification of bulk user's premises.

The DoT move comes after a number of cellular operators including Bharti Cellular and Idea Cellular's subscribers were found to be indulging in grey market activities. In one such instance involving the network of both the companies, which came under scrutiny by the vigilance wing of the Department of Telecom, the revenue loss to the Government is estimated to be nearly Rs 1.5 crore.

The vigilance wing has said in its report that the two companies had not carried out any inspection of the bulk users. "This non-adherence and failure to implement vigilant mechanism on the part of the service provider led not only to the said loss but also posed threat to national security," the report said.

The vigilance cell had recently unearthed cases of illegal activities against cellular operators where subscribers were illegally bypassing the permitted network by setting up small exchanges that switched long distance calls as local ones.

"The policy is aimed at creating a standard procedure for dealing with the cases of access providers who have been found violating the licence conditions especially in case where the subscriber was found indulging in illegal activities," said a DoT official.

The Union Minister for Communication and IT, Mr Dayanidhi Maran, had recently held a closed door meeting with all the operators on the issue. Operators had said that verification of subscribers may impede the growth in cellular usage and the cost involved may lead to an increase in the tariffs.

Cell cos to bear the brunt

  • Rs 50 crore penalty for every violation.

  • Operators to be held responsible for subscriber's activities.

  • Operators will be given 10 chances after which licence may be cancelled.

  • Additional bank guarantee after three violations.

  • Regular verification of bulk user's premises by operators.

    Article E-Mail :: Comment :: Syndication :: Printer Friendly Page


  • Stories in this Section
    Nokia is CII Brand of the Year


    Indian holdings of US gilts down to $12.9 b
    Novartis' case may spark patent vs patient debate
    Part-day peaking charges for power transmission on cards
    Raymonds to form Rs 180-cr jt venture with Italian firm — Another Rs 100-cr initivative planned
    Overseas buyer in talks for tsunami-hit Hyundai cars
    Delphi-TVS to pump in Rs 500 crore to make diesel engine components
    `Exciting times ahead for Indian pharma industry' — New Patents Act may bring in $10-b business
    Contributions to The Hindu Relief Fund
    DoT to act tough on illegal routing of calls


    The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
    Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

    Copyright © 2005, 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