India Today Group Online
 


April 23, 2001
Issue


India Today, April 16, 2001

 

COVER
   

Say Hello to Another
Scam
The raging corporate war over the introduction of limited mobility telephone services has turned political, with the Prime Minister's Office being charged with subverting the regulatory system and favouring a few business houses. An INDIA TODAY investigation looks at the conflict between the sanctimonious claims and the grim reality.

 

 
STATES
   

Ballot Boxwallahs
The approaching assembly elections have brought to life five states which are set to witness a stiff fight and whose results can have a big impact on all major parties. A profile of the prime contenders who could tilt the balance either way.

 

 
BUSINESS
   

Fall From Grace
Despite a triple-digit growth in net profits of Infosys Technologies and Satyam Computers, the stock prices of the two companies have plunged. Is it the gloomy forecast for software companies that's hammering down the prices?

 

 
ENVIRONMENT
 

Unnatural Alliance
The CNG controversy has taken a new turn, with doubts being raised about the propriety of the Delhi Government's selection of Nugas as the sole supplier of the conversion kit.

 

 
EDUCATION
 

The Doon Boom
The city that houses Doon School is now playing host to a whole array of new education barons--with big money and even bigger ambitions.

 

 
OTHER STORIES
     
 



 
  Home  
 

COVER STORY: GOVERNMENT

Cell Sins

Controversy and telecommunications have seldom parted ways in the past 10 years. And as the country lurches from one "scam" to another, victims and villains often trade places. Cellular companies, which are today crying hoarse over the introduction of limited mobility, were at the centre of the last big controversy that engulfed the telecom sector in July 1999. The then NDA government in its caretaker status had allowed all private telecom companies-basic and cellular-to move out of a system of paying licence fee to one of sharing a percentage of their revenues with the government. All telecom companies had bid for ridiculously high amounts of licence fee and then defaulted on their payment obligations. Since the arrears of cellular companies to the government were higher (Rs 2,581 crore) than those of basic-telephone companies (Rs 892 crore), the system was changed. Politicians across party lines had raised a storm over the alleged favours granted to cellular companies. The scam was claimed to be of the order of Rs 50,000 crore. In reality, that was the amount cellular and basic telephone companies would have had to pay to the government till 2015 if the system of licence fee had continued.

 

Free Airways
Spectrum dues of cell companies

  Escotel 35.6
  BPL 13.0
  Spice 9.0
  RPG 4.5
  Tata 3.2
  Dues from Aug.1, 1999 Figures in Rs crore

Some cellular companies continue to default, now on the payment of spectrum charge to the Department of Telecommunications. Today the outstanding dues of five cellular companies stand at over Rs 65 crore (see table). The companies dispute the amount, claiming that the calculation of spectrum charges has not been correct. But then, what about companies like Usha Martin who have been forced to shut service in most of their circles, leaving customers in the lurch.


 
 
 
Care Today
     METRO TODAY
 
   

MetroScape

Wealth Of Art
April 8 saw an unabashed get together of Mumbai's Who's Who when the annual Harmony Show, well known as "Tina Ambani's baby", celebrated its sixth showing at the Nehru Centre.
more...

Looking Glass

Bangalore Hotel:
Park.hotel

Mumbai Store:
Regent Watch and Jewellery Boutique

 

 
    Web Exclusives
DESPATCHES
 

A war of words is on at the Jammu border where India is trying to build a fence to stop infiltration, much to Pakistan's dislike, reports
INDIA TODAY's Special Correspondent Ramesh Vinayak in
Despatches.

 

 
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