Government accepts new norms for telecom sector
New Delhi: The government has adopted the new policy decisions on the telecom sector and allowed private basic and cellular service operators to migrate from the existing fixed licence-fee based system to a revenue sharing system. The government also gave these operators a six-month licence fee waiver. The system is to come into force on 1 August.

The main features of the new policy are:

• existing operators will migrate to the new policy regime of revenue sharing from 1 August 1999
• 15 per cent revenue will be shared as interim arrangement if the Telecom Regulatory Authority of India is not able to make its final recommendations before 31 July 1999
• all operators are to pay 15 per cent of licence fee as arrears before 15 August 1999
• the balance arrears, including interest, will be securitised through bank guarantees
• a five-year lock-in period for present shareholders from the date of licence agreement. No transfer of shares will be allowed
• fresh investors can come into a company, but existing shareholders cannot get out
• both the operators in a cellular circle will have to agree to migrate; or else both will remain in the present regime

It is estimated that the licence fee waiver will cost the government Rs 1,433 crore.
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FM radio sector opened up
New Delhi: The government cleared the entry of private sector operators into FM radio broadcasting. It will grant 10-year licences to private operators in 40 cities to run FM radio.

Licences will also be granted to non-governmental organisations, educational institutions and community radios. No foreign participation will be allowed.
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Rs 10,000 crore   from disinvestment
New Delhi: The government intends to collect Rs 10,000 crore from the disinvestment process in 1999-2000. In 1998-99, the process had generated Rs 6,190 crore.

The Union cabinet decided that two public sector units, the Indian Oil Corporation and the Gas Authority of India, will be up for disinvestment.
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MTNL net rates cut
New Delhi: The Mahanagar Telephone Nigam Ltd has announced a 15 per cent across-the-board reduction in internet charges. The charge for 100-hour use will be Rs 2,150 against the present Rs 2,550 and the renewal charges Rs 2,050. The charge for 250 hours will be Rs 4,700 against Rs 5,525 earlier, and for 500 hours, it will be Rs 7,250, against rs 8,500 earlier.

MTNL has also introduced two new slabs of 30 and 50 hours. The 30-hour usage will cost Rs 500 per month, with a ceiling of using internet services for one hour a day. Additional usage in a day will cost Rs 10 per hour. In case the subscriber continues to use the 30-hour a month service for a year, the renewal charges will be reduced to Rs 400. 
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