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DoT sticks to sops for rural telephony

Rejects Finance Ministry’s demand for review.

Thomas K. Thomas

New Delhi, Sept 22 The disconnect between the Department of Telecom and the Finance Ministry over various policy issues has widened with the former rejecting a review of its decision to lower licence fee for operators rolling out telecom services in rural areas.

DoT had decided to give sops to companies reaching out to the unconnected villages across the country. The first one was directed at fixed line operators by completely waving off the licence fee on the revenue earned from rural subscribers. The second decision was to reduce the contribution to the Universal Services Obligation fund by all operators who cover villages by their network.

However, since these decisions have revenue implications for the national exchequer, the Finance Ministry had demanded a review.

DoT’s stand

But DoT has rejected this saying the Telecom Commission, which had taken these policy decisions, had its own authority and therefore the Transaction of Business Rules did not apply to it. DoT also said the Telecom Commission has a Member (Finance) and if there was any issue the Finance Ministry could have sent its views to the Commission through the Member.

“In view of the powers of the Telecom Commission, the decisions taken are final and require no modifications,” a DoT official said.

Related Stories:
DoT offers sops to operators for rural rollout
DoT kick-starts second phase of rural mobile project

More Stories on : Telecommunications | Regulatory Bodies & Rulings | Rural Development

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