The Hindu Business Line : `New NTP favours late entrants' — 3 cellular operators seek compensation

The original licence holders, also termed as first and second operators, claim they have paid a much higher licence fee compared to the fourth cellular operator and the CDMA-based operators.

New Delhi , July 10

CELLULAR operators BPL Mobile, Idea Cellular and Spice Telecom have written to the Communications Minister and the Prime Minister seeking compensation relating to the unified access regime.

The three companies in a joint representation have said that the new regime has left the original cellular licence holders with an uneven playing field compared to the newer entrants.

"Given the economic disadvantage we suffer today as a consequence of the unified licensing policy recommended by TRAI and accepted by DoT, we wish to state that our abilities to invest and play a major role are hampered. We request you to review our situation and improve the economic distortions," said a joint letter written by the three operators to the Communications and IT Minister, Mr Dayanidhi Maran.

The representation comes in the wake of the Government's move to formulate a New Telecom Policy 2005 (NTP 2005) to replace the existing NTP 1999.

The original licence holders, also termed as first and second operators, claim they have paid a much higher licence fee compared to the fourth cellular operator and the CDMA-based operators.

"This excess entry fee paid by the 1st and 2nd operators should be set off against any proposed charge for spectrum for third generation services," said the representation.

The operators have suggested that the compensation can also be in the form of giving them long distance service licence at a very nominal entry fee. "The least that could be done is to provide inter-circle connectivity for cellular operators. This will enable better utilisation of infrastructure set up by the operators and also help reduce tariffs," the letter said.

They have also sought that revenues from non-telecom products and services offered by them be excluded from the amount based on which the annual licence fee is calculated. Such a move, they say, would help them bundle handsets at very low rates.

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