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The Tata Group Chairman-designate, Mr Cyrus Mistry, today raised concerns about the proposed 2G spectrum policy with the Communications and IT Minister, Mr Kapil Sibal. Mr Mistry was accompanied by Mr N Srinath, Managing Director, Tata Telservices.
The meeting comes a few days after questions were raised about the validity of Tata Teleservices' GSM spectrum in 19 circles. Last week, industry body Assocham had written to top government functionaries claiming that a total of 141 licences should be cancelled and that this would make more spectrum available for auction.
Mr Sibal is expected to meet promoters of other telecom companies this week before the entire 2G policy is taken up by the EGoM.
According to industry sources, Mr Mistry clarified the company's position on this issue to Mr Sibal. In addition, other aspects of the proposed 2G spectrum policy, including pricing, re-farming and amount of airwaves to be auctioned, were also discussed. While the Tatas favour re-farming, they are opposed to a high reserve price, as suggested by TRAI.
Meanwhile, the Cellular Operators Association of India, the industry body representing Tata Tele's rival GSM firms, shot off a letter to the Finance Minister, Mr Pranab Mukherjee, as he is the Chairman of the Empowered Group of Ministers.
LETTER WAR
“Please direct the Telecom Commission that the spectrum allocated to Tata Teleservices be treated as quashed and included in the spectrum to be auctioned by August 31 as any deviation would constitute shocking infidelity to the letter and spirit of the Supreme Court order,” COAI said.
Tata Teleservices was quick to dismiss the COAI letter, terming it as misleading and devoid of substance. “COAI is distorting facts and attempting to present a misleading picture before the Finance Minister, in a bid to subserve its vested interests. The letter is speculative in nature and represents a concocted story of some interested parties within COAI,” the Tata company said in a statement. The Tatas have also asked Assocham to withdraw its letter on this issue. But sources in the industry body said that it had only stated that the Supreme Court's order on licence cancellation should be implemented and hence it was not bound to withdraw the letter.
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