Private basic service providers may be hit
New Delhi: The state-owned Bharat Sanchar Nigam Limited (BSNL) is all set to deliver a body-blow to private basic telephony service operators.

Claiming that it has been making heavy losses under its current agreement with private operators, BSNL has decided to review the interconnection agreement it had signed with these companies and increase its revenue share in the domestic, STD, and ISD calls carried by BSNL on its network.

Accordingly BSNL wants to increase its revenue share to 50 per cent in local calls (as against none earlier), 70 per cent in STD calls (as against 40 per cent earlier) and 80 per cent in ISD calls (as against 45 per cent earlier).

The private players, most of whom are already making losses, state that this move will make their business plans completely unviable.

They are further constrained by the fact that they cannot increase call rates beyond Re 1.20 per three minute for a local call from the customer — which in turn is cross-subsidized from the revenue earned from long-distance calls.

They are contemplating approaching the Telecom Regulatory Authority of India (TRAI) and are also evaluating the option of a legal recourse, in case BSNL decides to go ahead with the proposed revenue share.

BSNL has called the basic operators for a meeting in the first week of May, to work out the new interconnection agreement.
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Local beer producers seek higher duty on imported beer
Mumbai: The domestic beer industry has urged the government to increase the duty on imported beer to 150 per cent in order to provide it with a level playing field. The government had recently reduced the duty from 119.40 per cent to 100 per cent.

Further, like in the case of import of automobiles, the industry bodies are stating that the import of beer should also be allowed only through a single port of entry. Besides, the government has also been urged to declare that the imported beer should conform to quality and information standards. The domestic industry is urging that it be made mandatory for foreign brands to sport labels in all local languages warning against the ill-effects of drinking. Such a warning label is mandatory for domestic manufacturers.
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Government rejects VSNL plans for basic services
New Delhi: The plans of state-owned Videsh Sanchar Nigam Ltd (VSNL) to offer basic telephony services in the cities of New Delhi and Mumbai, came crash landing with the government rejecting the undertaking’s application.

According to government sources, the existing policy guidelines for basic services operators preventing two companies with the same promoter from offering services was responsible for the rejection.

Since government-controlled BSNL is present in 19 circles and MTNL is already offering basic services in Delhi and Mumbai, VSNL’s application for offering basic operations is technically invalid.
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