Private basic service providers may be hit
New Delhi: The state-owned Bharat Sanchar
Nigam Limited (BSNL) is all set to deliver a body-blow to private basic telephony service
operators.
Claiming that it has been making heavy
losses under its current agreement with private operators, BSNL has decided to review the
interconnection agreement it had signed with these companies and increase its revenue
share in the domestic, STD, and ISD calls carried by BSNL on its network.
Accordingly BSNL wants to increase its revenue share to 50 per cent in local calls (as
against none earlier), 70 per cent in STD calls (as against 40 per cent earlier) and 80
per cent in ISD calls (as against 45 per cent earlier).
The private players, most of whom are already making losses, state that this move will
make their business plans completely unviable.
They are further constrained by the fact
that they cannot increase call rates beyond Re 1.20 per three minute for a local call from
the customer which in turn is cross-subsidized from the revenue earned from
long-distance calls.
They are contemplating approaching the
Telecom Regulatory Authority of India (TRAI) and are also evaluating the option of a legal
recourse, in case BSNL decides to go ahead with the proposed revenue share.
BSNL has called the basic operators for a meeting in the first week of May, to work out
the new interconnection agreement.
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Local beer producers seek higher duty on imported beer
Mumbai: The domestic beer industry has
urged the government to increase the duty on imported beer to 150 per cent in order to
provide it with a level playing field. The government had recently reduced the duty from
119.40 per cent to 100 per cent.
Further, like in the case of import of
automobiles, the industry bodies are stating that the import of beer should also be
allowed only through a single port of entry. Besides, the government has also been urged
to declare that the imported beer should conform to quality and information standards. The
domestic industry is urging that it be made mandatory for foreign brands to sport labels
in all local languages warning against the ill-effects of drinking. Such a warning label
is mandatory for domestic manufacturers.
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Government rejects VSNL
plans for basic services
New Delhi: The plans of state-owned
Videsh Sanchar Nigam Ltd (VSNL) to offer basic telephony services in the cities of New
Delhi and Mumbai, came crash landing with the government rejecting the undertakings
application.
According to government sources, the
existing policy guidelines for basic services operators preventing two companies with the
same promoter from offering services was responsible for the rejection.
Since government-controlled BSNL is
present in 19 circles and MTNL is already offering basic services in Delhi and Mumbai,
VSNLs application for offering basic operations is technically invalid.
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