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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 157.80

+0.9%

Jan 22 3:59 PM EST

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To: slacker711 who wrote (21368)	4/11/2002 11:23:09 AM
From: slacker711	Read Replies (1) of 197321

No surprise....the Indian mobile operators are planning to challenge WLL in the Supreme Court. Article also says that WLL operators would like to raise rates. I havent seen that before...but I have a hard time seeing how they will make money at a penny a minute. in.news.yahoo.com Indian mobile firms to challenge limited mobility policy NEW DELHI (Reuters) - India's mobile phone industry said on Thursday it would approach the country's Supreme Court to scrap a government policy that allows fixed-line phone firms to offer limited-radius mobile services. Last month, an appellate tribunal dismissed a similar plea by the cellular industry, saying it found nothing wrong with the policy aimed at boosting telephone penetration in the country which has a little over four phones per 100 people now. The Telecom Disputes Settlement and Appellate Tribunal's decisions can only be challenged in the Supreme Court. "The cellular industry...decided to approach the Supreme Court to seek justice and to appeal against the wrongful, illegal and unlicenced entry of fixed-line operators into mobile services," the Cellular Operators Association of India (COAI) said in a statement. The government in January last year allowed fixed-line firms to offer the cheaper "limited mobility" service to customers using the CDMA wireless in local loop (WLL) technology in a bid to attract private investments into the business. But cellular operators who use the rival GSM standard oppose this, saying it amounts to allowing backdoor competition in their business and would lead to a loss of customers for them. Tariffs for the CDMA service, dubbed as a "poor man's mobile service", have been capped at 1.20 rupees for a three-minute outgoing call while incoming calls are free. Regular GSM mobile service tariffs are around two rupees a minute on average for both outgoing and incoming calls. The COAI statement said the WLL mobile service was cheaper than the GSM mobile service only in tariffs but its monthly rentals and handset costs were more expensive. It added that the tariffs too would not be competitive much longer because fixed-line operators were lobbying with the government to increase rates after a steep cut in national long distance call charges. National long distance tariffs, which fell by up to 62 percent in January, are used to subsidise cheap local calls. "The fixed operators have summarily abandoned the plank of affordability and are now actively lobbying to get their call charges doubled to 2.40 rupees per three minutes and the monthly rental increased to 600 rupees," the statement said.

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