8th July, 2003
Ministry of Communications & Information Technology  


BSNL TO COME FORWARD WITH A NEW OFFER OF LIMITED MOBILITY PHONE FOR Rs. 20

GOVERNMENT TO LOOK INTO INTRA CIRLE MERGERS/ACQUISITIONS

CONSULTATIVE COMMITTEE OF THE MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY MEETS


The Public Sector Bharat Sanchar Nigam Limited (BSNL) will come out with a scheme to offer Limited Mobility Phones at a maximum of Rs.20/-. Disclosing this at the Parliamentary Consultative Committee Meeting of the Ministry of Communications and Information Technology here today, Shri Arun Shourie said Rs.20/- would be charged only as an insurance amount. He said the benefit of the policy initiatives taken by the Government have engineered fierce competition among the service providers which has benefitted the customers. Stating that telecom tariffs have come down by as much as 64 percent, the Minister said the public sector BSNL and MTNL have been given full freedom to compete.

The Minister said the case for intra-circle merger and acquisitions is being looked into. He said the efforts will be made to see that there are no monopolies while these telecom companies remain financially intact. Shri Shourie said that one of the ways could be that there are minimum of three operators in a circle and nobody has more than 30 percent of the spectrum. Giving a blueprint of the future policy initiative in spectrum, the Minister said efforts will be made for a unified license regime over a period of time without actually hurting the existing licensees.

To promote transparency and avoid controversy, the Minister said that the BSNL and MTNL are coming out with a purchase manual. This new manual will be released tomorrow.

On rural telephony, the Minister said new technology options have to be tried. Shri Shourie said to provide telephones in the rural areas on individual basis will be continuously loss making proposition. He also indicated that Department of Telecom will sign a Memorandum of Understanding (MoU) with Railtel to utilise the wide network of Railways. The Minister said that there is a need to have a relook at the functioning of agencies like C-DoT, Hindustan Cables and ITI with Department of Telecom as they can survive only if they go in for new technologies.

Presentations were made on spectrum management and new technologies for rural telephony. The presentation was made by Dr. S.G. Dhande, Director, IIT, Kanpur and his colleagues.

Participating in the Meeting, several Members stressed the need to revamp rural telephony and WLL services. They also pointed out the intra region disparity on rural telephony. They wanted that the quality of service should be improved.

Members who attended the meeting include: Shri Ramanand Singh, Shri Padamsen Chaudhary, Shri Gordhanbhai Javiya, Shri Laxmanrao Patil, Shri Sukhdeo Paswan, Shri Ajay Singh Chautala, Shri Bhan Singh Bhaura, Shri S. Ajaya Kumar, Shri Sanant Kumar Mandal, Shri Suresh Jadhav, Shri D.B.Atkinson, Col.Sona Ram Choudhary, Shri Rajo Singh, Shri K. Muraleedharan, Shri Shriniwas Patil, Smt. Sangeeta Singh Deo, Smt. Ratna Singh, Shri Rupchand Pal and Shri K.P. Singh Deo (All Lok Sabha Members); Shri Nilotpal Basu, Shri Anil Sharma, Shri B.P. Singhal, Shri S.S. Ahluwalia, Smt. Maya Singh, Shri Suresh Bhardwaj and Shri B.J. Panda. (All Rajya Sabha Members).