Telecom Min extends olive branch to GSM players

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posted on 16 years ago — updated on 1 second ago

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The Telecom regulator's criteria were two to eight times stricter than existing norms.

New Delhi: The department of telecom will settle for the telecom regulator's advice on spectrum allocation at its meeting with GSM players on Wednesday. This is a less generous offer than the one made by minister A Raja at a compromise meeting with a leading GSM player.

When Telecom Secretary D S Mathur meets the country's top GSM operators on Wednesday, it will not be the ministry's first attempt at peace, CNBC-TV 18 learns from sources in the ministry at the very top, that minister Andimuthu Raja had extended the olive branch to the GSM industry through its leading operators.

He was willing to cut by half, the criteria advised by the telecom regulator for allocation of additional spectrum. The Telecom regulator's criteria were two to eight times stricter than existing norms. In return, Raja wanted the GSM industry not to challenge in court the TRAI's recommendations on spectrum allocation and dual technology use.

But the GSM industry spurned the offer by saying that the TRAI's recommendations were flawed and a wrong could not be set right by offering a discount. GSM operators then threatened to take DoT to court and followed their words with action.

Ministry officials are miffed that GSM operators had squandered an opportunity. The DoT is willing to settle for the TRAI's criteria, because subsequently, the technical wing of the department has recommended tougher spectrum allocation norms. In return the government would want the GSM operators to withdraw their case at TDSAT.

We learn that Wednesday’s meeting has been called at the behest of the Prime Minister's Office. The PMO is not in favour of a confrontation between sections of the industry and the government. And so is pushing for a settlement.

So while Round 1 of the negotiations could see industry leaders meet only the secretary. Round 2 could see the involvement of the minister and more importantly the principal secretary to the prime minister's office- T K A Nair.

The GSM Industry says the DoT climb down is unacceptable. There are no signs of a patch up. The minister has rejected the law ministry's proposal for a group of ministers. The Prime Minister's office is keeping a close eye. The Principal Secretary to the Prime Minister could end up playing the peace broker.