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Regular-article-logo Sunday, 05 May 2024

REVENUE-SHARING OKAYED WITH RIDERS 

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FROM OUR CORRESPONDENT Published 10.08.99, 12:00 AM
New Delhi, Aug 10 :    New Delhi, Aug 10:  The Delhi high court today allowed the government to implement the revenue-sharing arrangement for telecom companies as an interim measure after they agreed to furnish individual undertakings that will make the package subject to the approval of the new Cabinet and the Lok Sabha. However, the court cleared the way for the Election Commission (EC) to decide whether the bailout package announced last month violated the electoral code of conduct. The next hearing has been slated for December 6. All basic and cellular operators have been asked to furnish to the court separate affidavits stating they will not object if the package is withdrawn either by the new council of ministers or the next Lok Sabha after it is implemented by the current caretaker government. The undertakings will be valid till December 31. A two-member bench, comprising chief justice S N Variava and Justice S K Mahajan, said the rights of operators will be decided on the basis of the existing licence fee regime, not under the terms of the National Telecom Policy, if the new government or the Lok Sabha scrapped the package. This means disapproval will force operators to automatically revert to the old licence-fee system. The amount paid by operators till that point of time as a one-time entry fee will be adjusted against their outstanding dues. ?The licences under the new policy should be given only to companies which have given an undertaking to abide by the decision of the next Lok Sabha,? the judges asserted. Harish Salve, the counsel representing Cellular Operators Association of India (COAI), and K Venugopal, the counsel appearing for Association of Basic Telecom Operators (ABTO), agreed that all operators would submit separate undertakings to this effect. Taking a clear stance on the status of the NTP, the judges said: ?Under the interim order, the national telecom policy should not be considered to be approved, disapproved or invalidated.? The bailout package allowed private operators to switch from the current system of fixed annual licence fees to a new regime under which they would have to share 15 per cent of their revenue with the government. Operators were asked to pay 35 per cent of licence fee arrears till July to be eligible for the switchover. The package was supposed to come into effect from August 1 but was stalled after the government gave an undertaking to the court that it would maintain status quo by keeping the implementation of the package on hold till August 10. Indira Jaisingh, the counsel representing the Delhi Science Forum (DSF), alleged that while the government?s lawyer raised objections to DSF?s interaction with the press, the Centre itself has been passing its opinion to the media. ?The Prime Minister?s Office (PMO) has faxed copies to newspaper offices containing the Election Commission?s reference to court on the telecom package,? she argued. Attorney general Soli Sorabjee initially said he had no knowledge about the fax allegedly sent by the PMO. Later however, he presented a copy faxed from the PMO, but argued the contents were not meant for public consumption. ?This is not meant for the press. It was only made for internal discussions.? The bench, which had the copy of both fax copies, responded to the claim by pointing out that the crucial third paragraph was omitted in the copy sent to the attorney general.    
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