Phones on demand by 2002
Arbitration role for TRAI

NEW DELHI, March 26 (PTI) — The government today announced a new telecom policy to boost private participation, under which all future licences will be given on a revenue-sharing basis, state monopoly on long distance telephone services be eliminated and telecom regulatory authority (TRAI) be further strengthened.

Under the new policy, to come into effect from April 1, the Department of Telecommunication (DoT) and Mahanagar Telephone Nigam (MTNL) would have to pay licence fees to provide a level playing field to the private sector.

Unveiling the policy, approved by the Union Cabinet earlier in the day, Communication Minister Jagmohan and Chairman of High-powered Group on Telecom (GoT) Jaswant Singh said that it was aimed at expanding the communication network in the country to provide phones on demand by 2002.

As per the policy the DoT would be corporatised by 2001, and this would be preceded by separation of its licensing functions through creation of a Department of Telecom Services.

Under the new dispensation, the long-distance services would be opened to private sector from January next, while the international services would be considered in 2004.

Existing contracts for basic and cellular operators under the licensing fees would be continued, but any new licence would be issued on a one-time entry fees and a revenue sharing formula, which TRAI would work out in a time-bound manner.

The new policy provides for strengthening TRAI by assigning arbitration job for resolution of disputes between government as a licensor and licensees, besides the government seeking its recommendations on the number and timing of new licences before finalising on such matters.

All cellular mobile operators would be allowed to provide public call office (PCO) services.

The Indian Telegraph Act, 1885, and Indian Wireless Act, 1933, would be reviewed and replaced with more forward-looking statutes.

The policy prevents Internet telephony, but allows cable operators to provide two-way voice and data after obtaining licence for fixed telecom services.

Meanwhile, new telephone rates with some changes in the tariff order passed by TRAI on March 9 is likely to be announced by the government tomorrow.

"Government is working on a solution to the tariff controversy and it will be announced tomorrow," Jagmohan said here.

HAZARIBAGH (Bihar): Union Finance Minister Yashwant Sinha on Friday expressed surprise over TRAI's decision to enforce new tariff rates in ‘defiance’ of the Centre’s directive.

Sinha criticised TRAI for notifying enhanced tariff rates for telephone subscribers in both rural and urban areas despite a government policy direction against it. TRAI, he said, was legally bound to abide by the Central government directives on policy matters.

Amendments to cable TV Act okayed

NEW DELHI, March 26 (PTI) — The Union Cabinet today approved amendments to the cable TV Act, making it mandatory for all foreign television channels to follow a programme and advertising code and decided to allow all future Indian broadcasters to uplink from the country.

The amendments to the Cable TV Networks Regulation Act, 1995, would also make it compulsory for all cable operators to carry DD-I and DD-II through satellite link and on a particular band to ensure clear reception.

The Information and Broadcasting Minister, Mr Pramod Mahajan, told newsmen after the Cabinet meeting that approval was also given to amend the Act to protect subscribers from exploitation by pay channels in view of complaints that some sports channels hike fees before major events.

The programme and advertising code, at present applicable to only Doordarshan, would now apply to all foreign channels once Parliament approves the amendments to the Cable TV Networks Act.

As regards uplinking, Mr Mahajan made it clear that the decision was only for the ‘C-band’ and not ‘KU-band’. A decision on direct-to-home television was yet to be taken by the government. 

Stating that Indian broadcasters could uplink using their own captive teleports, Mr Mahajan said the government decision expands uplinking facilities for all future broadcasters.

Currently, there are seven companies with uplinking facilities from Indian soil.

The existing code gives an extensive set of guidelines including that no programme should offend good taste or decency, contain anything obscene, defamatory, deliberate, false and suggestive innuendos and half- truths.

The code also bars encouraging superstition or blind belief in programmes and makes it mandatory that programmes meant for adults should be carried after 11 p.m.

CVC to stay, expenditure allowed

NEW DELHI, March 26 (PTI) — The Union Cabinet decided to continue the Central Vigilance Commission (CVC) through an executive order beyond April 5, when the CVC ordinance lapses, but it will not enjoy statutory powers.

The executive order would be in the form of a resolution, which would be in force until the CVC Bill, approved by the Lok Sabha, gets cleared by the Rajya Sabha, the Information and Broadcasting Minister, Mr Pramod Mahajan, said.

"The CVC will continue to function on same terms, conditions, powers and restrictions stipulated under the CVC Bill,' he said, adding that it would not have statutory powers until the Bill is passed by Parliament.

The decision to issue a resolution was made after taking legal advice of the Attorney-General and the Additional Solicitor-General.

This was the only best solution available,' Mr Mahajan said, adding the government had examined various options, including proroguing one of the two Houses for re-promulgation of the CVC ordinance.

'Had the CVC lapsed, it would have created problems,' he said, pointing out that the existing CVC members would then have to be replaced since they cannot hold more then one term.

The ordinance was promulgated on August 25, 1998, to confer statutory status on the commission. Following a Supreme Court order, the ordinance was amended and re-promulgated.

The Bill was passed in the Lok Sabha on March 15 and was listed to be taken up in the Rajya Sabha, but this was not possible as the Upper House was adjourned for consecutive days before the three-week recess.

In another decision, the Cabinet decided to allow various government ministries and departments to incur expenditure as proposed in the supplementary demands for grants and the relevant appropriation Bills passed by the Lok Sabha on March 17, mainly for payment of salaries.

'This expenditure will be treated as excess expenditure and would be regularised as excess demand for grants (when Parliament is reconvened after a three-week recess on April 12)', Mr Mahajan said.