Hutchison and Reliance apply for Indian fixed licenses
By Jagdish Rattanani, Total Telecom, in Mumbai
01 February 2001
The Hutchison Whampoa group, India's biggest cellular phone operator, has applied for licenses to run basic telecoms services in India, a subsidiary of the group confirmed on Thursday.
Hutchison Max Telecom Ltd. said the group's subsidiaries have applied for five basic services licenses to cover the city of Delhi, as well as the states of Maharashtra, Gujarat, West Bengal and Tamil Nadu.
The group is among several operators that have made a beeline for fixed licenses after the Indian authorities decided to allow basic service operators the option of providing limited mobile telephony using wireless local loop (WLL) technology, within a radius of 25 kilometers.
Under the new guidelines issued on 25 January, India also opened up the basic telecoms sector to unrestricted private sector participation.
Reports said the department of telecoms had received more than 50 applications for fixed licenses across the country, which is divided into 21 operational areas, called "circles." Each circle requires a separate license.
Among those who have applied for basic licenses is the Reliance Group, which already holds licenses for cellular services in 13 states through Reliance Telecom.
Reliance Infocom Ltd. has now applied for fixed-line service provider licenses in 11 circles, Reuters quoted a senior company official as saying on Wednesday.
Hutchison Max Telecom implied it had little choice but to apply for the basic telecoms licenses.
"Hutchison decided to apply for a basic services license in view of the WLL limited mobility being permitted to the basic service operator. Hutchison affiliate companies are already in the mobile business in four circles. Therefore this is a defensive move," the company told Total Telecom.
The Cellular Operators Association of India (COAI) has opposed the move to allow limited mobility, fearing the cheaper WLL-based mobility offered by basic operators could draw away customers from their GSM services.
The COAI has petitioned the Telecom Dispute Settlement and Appelate Tribunal, and the matter is pending.
The government, however, believes that opening the field without restrictions on the number of operators, coupled with mobility on fixed lines, will help India quickly roll out telecoms services across the vast corners of the country, helping the country to take its teledensity from 3% now to 7% by 2005. |
