The Telegraph
Since 1st March, 1999
Email This Page
Ministry waives bank guarantee for V-Sat users

New Delhi, April 13: In a move to ramp up the use of very small aperture terminal (V-Sat) services, the communications ministry has waived the submission of performance and bank guarantees by the government departments, public undertakings, state government departments and private organisations.

The communications ministry has also approved the proposal to allow V-Sat operators to pay on a revenue sharing basis in lieu of the wireless planning commission (WPC) charges.

According to a senior official in the communications ministry a tentative proposal is being considered for the amount of revenue share in lieu of WPC charges. Transfer rate speed in the range of 128 kilobits per second (KBPS) will attract 3 per cent of the total revenue as WPC charge. More than 128 KBPS up to 512 KBPS will attract 3.5 per cent and above 512 KBPS will attract a WPC charge of 4 per cent of the total revenue.

A comprehensive study on charges to be levied, including international practices on this issue, will be presented before the telecom commission by April 30. WPC wings will jointly work out all the details of the changes required in the structure of WPC fees and licence fees, revealed sources in the communications ministry.

These two decisions will help companies that use V-Sat for connecting their operations, like the service industry, hotels, media houses, courier services, various government departments and public sector undertakings.

As per the licence agreement, both the performance and bank guarantees are to be submitted by all the licensees irrespective of whether they are private or public organisations, central and state government departments.

A senior official in the communications ministry said: “It is in line with the recommendations of DoT’s legal adviser, who said that there was no need to insist on bank guarantees from the central government departments.”

Email This Page