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May 5, 2001
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Money > Business Headlines > Report May 5, 2001 |
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3 formulas to resolve COAI crisis, vote on May 9BS Bureau The Cellular Operators Association of India will put to vote on Wednesday the three different formulas suggested by the members in order to resolve differences on the stand taken on the report submitted by the Group on Telecom and IT. One formula, mooted by B K Modi, promoter of Spice Telecom -- a pure cellular operator -- demands withdrawal of all letters of intent issued by the government to basic operators. These include those to Reliance, HFCL and the Tatas who have been issued LI's for 47 applications. Bharti is also close to getting its LI. This group has totally opposed limited mobility and has suggested that basic operators must apply for a cellular license in the fourth round of bidding. The second formula envisages acceptance of limited mobility, but only on the condition that the government will provide cellular operators with concessions which include changes in the interconnect terms. The third formula, while not pushing for withdrawal of LIs for basic operators, will continue to oppose allowing limited mobility. The meeting will also put to vote the future course of action to be taken after the TDSAT gives a decision. Speaking to Business Standard, Vinay Rai, COAI chairman, while confirming the meeting on Wednesday said: "We must come to a solution which will be beneficial to the cellular operators, but within the framework of the national interest of the country." The three formulas reflect the divisions within the cellular operators -- one represented by pure cellular operators like B K Modi, the other led by operators both in the cellular as well as basic services business and the third led by companies with businesses in only cellular but looking for a new basic licence. The decision to meet on Wednesday has been propelled by BK Modi's decision to come out in the open on differences within COAI. In a press conference on Thursday, he congratulated the government on the GOT-IT report and urged some of its members, who had been issued LIs to start basic service operations, to return them to the government. His stand was in variance to the COAI's official position after the GOT-IT report was released, where they expressed disappointment because it allowed limited mobility and said it 'failed' to address issues raised by the cellular industry which was opposing limited mobility. Powered by YOU MAY ALSO WANT TO READ:
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