DoT has suggested two options -- first is rescheduling of the licence fee payments keeping the NPV constant and the second is evolving a formula for revenue sharing above the minimum NPV fixed by DoT at the time of bidding. This however, DoT has warned, may be fraught with some legal implications which will have to be tackled.

DoT sources say any solution ``without radical surgery'' would only add to the legal problems of the department. The Government is already facing two public interest litigations -- one filed by theBhartiya Kisaan Union and the other by an individual. Apart from this, there are several letters by Members of Parliament including one by former Prime Minister H D Deve Gowda warning the Government from indulging in any ``post tender negotiations''.

DoT officials explain that while all proposals regarding movement from the current licence fee regime to a revenue sharing with the Government is agreeable, it cannot be done unless the present licensees are either given a grace time period for paying up their licence fees dues -- amounting to Rs 2,300 crore in the case of cellular operators and Rs 900 crore in the case of basic operators -- cancel these licences and then move towards a new regime.

The Government is currently facing pressure from several lobbies -- large companies with huge licence fee liabilities want to move towards a revenue sharing arrangement. Multinationals, on the other hand, are lobbying for free auctions of the spectrum as they are confident that they would be able to bid the highestamounts and corner frequencies for the next several years to come thereby controlling all telecommunication and information and broadcasting projects in this country. Both these categories of companies are championing the cause of free competition as they feel they have the financial muscle power to sustain in the long run if their projects are made more viable by removing the licence fee burden.

Apart from this, there is another lobby of smaller companies which though have smaller licence fee obligations, have some liquidity problems making them unable to meet the licence fee commitments for the moment. It is these companies who have managed to get a toehold in the earlier bidding process though want some reliefs in the licence fee payments, but do not want to give up their privilege as a duopoly operator which is currently ensured for them.

The process of bailing out private telecom companies in the field of cellular and basic services has virtually become a tug-of-war between various Governmentdepartments. On the one side is the Prime Minister's Office championing the cause of the private operators and on the other side are various other ministries like Communications, Finance, Defence and Law which are finding it difficult to implement the radical changes suggested by the private companies and backed by the PMO.