Home > Business > Business Headline > Report
Cell firms want Rs 10,000 crore as compensation
Surajeet Dasgupta in New Delhi |
September 02, 2003 11:20 IST
Bharti Group Chairman Sunil Mittal has said cellular service providers should be paid over Rs 10,000 crore (Rs 100 billion) as compensation if the government amends rules and allows wireless in local loop operators to offer full mobility.
Mittal said the Rs 10,000 crore figure was based on a study commissioned by the Cellular Operators Association of India and conducted by consultancy firm PricewaterhouseCoopers.
He said this would bring about a level playing field, which had been disturbed because WLL operators like Reliance Infocomm and Tata Teleservices were offering almost fully mobile services.
"When you have a contract and it is broken by one party, compensation has to be provided. This is the international practice," said Mittal.
Mittal, who has kept a low profile in recent months despite a raging controversy over WLL services, told Business Standard that he would not oppose the government if it wanted to issue fifth and sixth cellular licences, provided the telecom disputes tribunal's recent judgment on limited mobility was implemented.
The tribunal has upheld limited mobility services, with several restrictions. "I cannot join the chorus on limiting competition. But a due process has to be followed," he said.
The Bharti chairman also said if he was compensated, he would not stop other cellular operators from demanding a national long-distance licence without paying for it. Bharti had paid Rs 500 crore (Rs 5 billion) for a national long-distance licence.
Mittal also rejected the government's attempt to push unified licensing as a way out of the problems plaguing the sector.
He pointed out that the consultation paper on unified licensing contradicted the tribunal's judgment.
"The consultation paper on unified licensing has called for suggestions on allowing full mobility to fixed-line operators. But the tribunal's judgment says licences are service-specific and fixed-line operators cannot provide fully mobile services," he said.
"The consultation paper contradicts the tribunal's judgment since it has raised a question on which a verdict has been passed. Therefore, unified licensing is not the way to go ahead," he added.
The Bharti chief said the government must restore the level playing field and also allow acquisitions within a circle. He also said the foreign direct investment cap in telecommunications should be raised and the flow of domestic funds into the industry should be eased.