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May 4, 2001
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Money > Business Headlines > Report May 4, 2001 |
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COAI on the verge of a splitBS Economy Bureau The Cellular Operators Association of India is heading for a split with pure play cellular operators spearheaded by ModiCorp clashing with members who have both basic and cellular interests. The unrest amongst the COAI members, simmering for quite some time now, finally boiled over into the open on Thursday with BK Modi, chairman and CEO, ModiCorp, choosing to differ from the official position of the COAI on the GOT-IT report. At a press conference, Modi raked up issues like voting rights, withdrawal of LIs issued to basic operators and the GOT-IT report, even as he took a dig at a section of the COAI who were "wearing two-three hats at the same time." The GOT-IT report, Modi said, acknowledged that the limited mobility service was distinct from basic services. "I am extremely happy with the GOT-IT report," he said. Modi's remark was a tongue-in-cheek reaction to COAI's statement on April 27, which expressed its unhappiness and said the report "failed to address the major demands put forward by the cellular industry." According to Modi, if an operator was a COAI member, he should promote only the interests of cellular service providers. "He should not think of all his other business interests simultaneously using the COAI platform." When contacted, TV Ramachandran, general secretary, COAI, agreed with Modi's statement and said that the earlier statements on the GOT-IT report were "probably made without much insight." Even Vinay Rai, chairman, COAI, admitted there was a difference of opinion on certain issues among the members. But he quickly added that an executive council meeting to be held in the next few days would iron out all the differences. "In the light of the GOT-IT report, a discrepancy has crept in the process followed for issuance of fixed service providers licences, which includes limited mobility. Hence, the LIs issued under the January 25 guidelines must be withdrawn and a fresh view on limited mobility licensing terms must be taken," Modi said. However, COAI members including Bharti, Tata and Birla who have applied for basic services also are strongly against any such move by COAI. A company executive representing their views said, "We have no business to tell the government what it must do. We can only say that we are against its decisions like allowing limited mobility." On the issue of voting rights, Modi said every COAI member has equal voting rights. Rai however said that an operator in Circle A (which is more lucrative) had three times the voting power of a Circle C operator. "The voting rights depend on the circle in which the member operates," Rai contended. Ironically, Modi's briefing today was to clarify that contrary to various news reports there was no split in COAI. However, in an indication of an impending split, Modi said, "There may be a time in the future when a new convergence association can be created for those with varied interests." Powered by YOU MAY ALSO WANT TO READ:
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