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Home -> Finance -> Full Story

Shourie brokers truce between Cell, WLL operators
Sunday, December 28 2003 17:06 Hrs (IST)

New Delhi: Circa 2003 proved to be a year of intense battle between cellular and basic operators on WLL (Wireless in Local Loop) services, leading to change of guard at Communications Ministry, but the consumer emerged as the biggest beneficiary in terms of drastic reduction in tariffs.

The fierce row between cellular and WLL operators ended after Government announced a compensation package within weeks after introduction of Unified access licence, and COAI (Cellular Operators Association of India) decided to end 3-year long litigations against WLL services.

A volatile communication year began with snapping of telecom links between cellular and WLL players after which Pramod Mahajan relinquished charge of Communication Ministry in favour of Arun Shourie, who finally succeeded in bringing about a truce.

The year gone by saw major policy decisions right from making incoming calls free, single license regime for basic and cellular services, nod to mergers and acquisitions and last but not the least an indication of a hike in foreign investment cap to 74 per cent from existing 49 per cent.

Reliance's entry into telecom, although controversial, triggered off a tariff war with its ad-campaign of 40 paise per call on WLL phones, forcing cellular operators to lower the rates for survival.

Reliance was later penalised by telecom regulator TRAI (Telecom Regulatory Authority of India) for offering cellular type services on WLL phones but the decision came in tandem with Government's policy of ushering in single licence regime for basic and cellular services.

PTI