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Reliance set to launch basic telephony

The signing of the deals follows furnishing of bank guarantees for an estimated Rs 13,000 crore (Rs 130 billion) by Reliance Telecom in Delhi this week along with the payment of about Rs 500 crore (Rs five billion) towards the entry fee, official sources in Delhi said.

The sources said agreement for the Tamil Nadu circle was held up but did not give details.

Reliance officials and its spokesperson could not be contacted in Bombay for comments.

Sources said Reliance also cleared its past dues, including that for the Gujarat circle, as part of conditions to get the new licences for providing the basic services.

Altogether, the company paid the government Rs 630 crore (Rs 6.3 billion) by way of entry fee and other dues, the sources said and clarified that bank guarantees were for three years of operation.

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