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Rakesh Sharma, a farmer from Haryana — the first one to buy Motorola's low cost handset C 138 — flanked by the Minister for Communnication and Information Technology, Mr Dayanidhi Maran, and the GM, South West Asia, Motorola India, Mr Percy P. Batlivala, at the Cellular Summit in the Capital on Tuesday. — Kamal Narang

New Delhi , April 26

THE Government is considering allowing direct inter-circle connectivity to cellular operators, which will allow cheaper long distance calls on mobile phones.

At present, cellular operators are required to route calls between two circles through a network of a national long distance operator which increases the cost of the service.

"We are looking at the possibility of allowing inter circle connectivity to mobile operators. At present, they have to pay the long distance fee if they have to get direct connectivity, which is really steep," said Mr Dayanidhi Maran, Union Minister for Communication and IT, while inaugurating the Cellular Summit 2005, organised by the Cellular Operator's Association of India.

The move will benefit operators such as Hutch and Idea Cellular which do not have their own NLD network.

The Minister also launched the world's cheapest mobile handset, which will be available for Rs 1,700 in two months. The handset, manufactured by Motorola, has all basic features such as short messaging and eight hours of talk-time.

Swedish equipment vendor Ericsson also showcased live 3G mobile applications at the summit.

Mr Maran said the Government is looking to reduce bank guarantee for spectrum usage charge. He urged private cellular operators to take the initiative and roll out services in rural areas.

"If Bharat Sanchar Nigam Ltd can go to rural areas, I don't see why private operators cannot. The Government is prepared to remove all hurdles that come in the way of achieving the target of 250 million phones by 2007," Mr Maran said.

The Minister was responding to comments from Mr Sunil Bharti Mittal, Chairman and Managing Director, Bharti Enterprises, that BSNL should share its nationwide infrastructure with private operators. Mr Mittal said the Government should consider taking away the licence fee for operators and reduce the various taxes imposed on the industry.

Mr A.K. Sinha, Chairman, BSNL, said the State-owned company had a target of 125 million phones by 2007, which will translate into a 50-per cent of the market share.

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