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DataCom LOI cancelled - (1)   25-Apr-08 11:02Tracked by (0)  
Posted by:   jalanbk on ( 25-Apr-08 11:02 )
Price : BSE: Rs 20.90 ( 1.21 % ), NSE: Rs. 20.85 ( 0.97 % )
ET 24 th April

NEW DELHI: The government today said 16 companies have signed telecom license with it for rolling out services.

Out of the 121 Letters of Intent (LOIs) issued in January this year, 120 Unified Access Services (UAS) licence agreements have been signed with 16 private companies, Minister of State for IT and Communications Jyotiraditya Scindia said in a written reply in the Rajya Sabha.

In addition, five LOIs were also issued to ByCell Telecommunication India Ltd in February though the UAS licence agreements with ByCell have not been signed till date, he added.

Moreover, the government has also cancelled the LOI of Datacom Solutions as it has not submitted compliance of LOI for Punjab Service Area, he said.

As per terms and conditions of the UAS licence agreement, the licensee has to commission the applicable systems within one year from the effective date of the licence.

To another query the Minister said that to combat competition from the private sector telecom players, state-owned Bharat Sanchar Nigan Ltd (BSNL) is planning to expand its capacity by adding 33.5 million lines in the next one year.

He said, BSNL has planned to add 33.5 million lines capacity in next one year.

Agreeing that the telecom PSU is facing decline in its market share Scindia said, "Decline in market share of BSNL in wireless segment is due to increase the number of private players and fierce competition among different service providers."
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