Express Properties

Search Button

The Indian Express

The Financial Express

Latest News

EIW

Market Indicators

Screen

Celebrity Chat

Express Computers

Express Power

Letters

Advertisers Forum


Express Careers

Business Forum

Match Maker

Express Properties

Palki - Travel & Tours

Information Technology

Astrosurf

Eco-India

Dr Know

Morning Digest

Express Greeting

Graffiti

Crossword

Drumbeat: Ad Buzzaar


INDIAN EXPRESS FRONT PAGE

Politics

Business

Expressions

General

World

Sports

Leisure

States

 

Wednesday, September 30, 1998

Cell operators, Govt haggle over fee

Navika Kumar  
NEW DELHI, Sept 29: Fresh round of sparring is on between cellular operators and the Government. The issue remains the same -- licence fees -- but this time around it is the cellular operators in the four metros -- BPL Mobile and Hutchison Max in Mumbai, Airtel and Essar in Delhi, Modi Telstra and Usha Martin in Calcutta and RPG and Skycell in Chennai vs the Government. At the beginning of October the metro operators will be liable to pay the Government Rs 314 crore as licence fees for the four metros. The licence conditions for the metro operators states that from the beginning of the fourth year of the licence period, operators would have to pay Rs 6,023 per subscriber per year as the licence fee. The licence agreement had also given a minimum level of Rs 18 crore for Mumbai between the fourth and the sixth year, Rs 12 crore for Delhi, Rs 9 crore for Calcutta and Rs 6 crore for Chennai.

The metro operators now say that while they would agree to pay this minimum amount, the Rs 6,023 per subscriber figurewas an unreasonably high one. The operators have approached the Government for concessions on this front stating that the low revenues in these four cities make it impossible for the operators to pay such high licence fees.

The Government has so far not yielded to the cell operators' pressures as it is already in trouble with the Comptroller and Auditor General (CAG) for charging such low licence fees in the first three years. DoT has, in fact, sent letters to each of the eight operators to supply figures for the subscriber base as in the month of June as a benchmark to calculate approximately the licence fees due from each of them. The telecom department is in a bind over the issue as the first operator whose licence fees was due was Modi Telstra in Calcutta whose fourth year began on August 23. While the company would owe the Government over Rs 17 crore as licence fees, going by the June subscriber figures, the company has only Rs six crore as bank guarantees lodged with DoT. Similar would be the casewith other operators.

Apart from this, if the Government does not take action on the companies which fail to clear their dues on time, it would set a legal precedent which other operators may take advantage of at a later date.

The operators who are obviously feeling the heat on account of the impending payments have now begun to indulge in a novel exercise to prune their subscriber numbers in an attempt to understate their licence fee obligations. ``Now everybody wants to be trailing behind as the liabilities become lesser as the numbers come down,'' says a senior official in the Department of Telecommunications (DoT).

Cellular operators explain that earlier they had included numbers of all subscribers, including those who were actually with other operators in other cities but for roaming purposes used another operator in a different city.

These numbers are now being chopped off as these are not ``actual'' subscribers. Also, metro operators are disconnecting numbers which are bad payers ofoutstandings more aggressively now, says a Delhi operator.

Operators are also actively chopping of subscribers who have left the network and moved on, which earlier were allowed to remain on the list as they contributed to the numbers signifying the success rate of the operator.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


Top


Sardar Sarovar Narmada Nigam Ltd.

Bank of India

Astrosurf
 

Click here for a printer-friendly page Printer-friendly page

India Gift House


The Indian Express  |  The Financial Express  |  Latest News
Screen  |  Express Investment Week  |  Market Indicators  |  Express Computers
Astrosurf  |  Eco-India  |  Travel & Tourism  |  Information Technology  |  Drumbeat: Ad Buzzaar
Advertisers Forum  |  Career India  |  Business Forum  |  Match Maker  |  Express Properties