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Bharti to seek level-playing field

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November 11, 2005 15:57 IST

A day after welcoming the decision to increase competition in the long-distance telephony by cutting levies, integrated telecom major Bharti on Friday said it will take up the issue of "level-playing" field vis-à-vis new players with the government.

"It is a matter of natural justice and established principle that when a new policy welcomes new players, existing players should be ensured of 'no-worse off' situation. So we will approach telecom minister again on the issue of level-playing field," Akhil Gupta, Joint MD and group CFO, Bharti told PTI.

The field for the new and old players must be equated, he said, adding that government should look at the option of returning the unexpired part of the licence fee paid by existing NLD operators.

"We have to talk to the government again and while it is entirely the discretion of DoT, we are hopeful that the principle of natural justice will be upheld," he said. The government on Thursday announced a steep cut in the entry fee and revenue share of ILD and NLD operators to Rs 2.5 crore (Rs 25 million) and six per cent from the current 100 crore (RS 1 billion) and Rs 25 crore (Rs 250 million) respectively.

Existing players like Bharti, Reliance and Tata had paid over Rs 1,500 crore (Rs 15 billion) as entry fee for the LD licence.

Earlier these three players had asked for about Rs 2,800 crore (Rs 28 bilion) compensation from the government in case licence fee is cut and the government is believed to have rejected it.

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