THE TELECOM REGULATORY AUTHORITY OF INDIA (TRAI) IN A LETTER HAS ASKED DOT TO RELAX THE AUCTION
TERMS,PARTICULARLY SUGGESTED A REDUCTION IN BANK GUARANTEE BY MOBILE OPERATORS.
THE DEPARTMENT OF TELECOMMUNICATIONS HAD ASKED NEW ENTRANTS IN ANY SERVICE AREA TO SUBMIT A
PERFORMANCE BANK GUARANTEE OF RS.35 CRORE AND EXISTING SERVICE PROVIDERS RS.21 CRORE PER SERVICE AREA
FOR A MINIMUM PERIOD OF SIX YEARS BEFORE SIGNING THE LICENCE AGREEMENT.BUT TRAL HAS SUGGESTED TO REDUCE
THE BANK GUARANTEE SUBSTANTIALLY TO RS.14 CRORE FOR EACH NON-METRO SERVICE AREA,AND RS.7 CRORE FOR DELHI,
MUMBAI AND KOLKATA SERVICE AREAS
HERE IT MAY BE REMEMBERED THAT EARLIER IN THE CASE OF RESERVE PRICE OF SPECTRUM,TRAI HAD SUGGESTED DRASTIC
REDUCTION OF ABOUT 60 PER CENT AND THE GOVERNMENT ACCEPETED IT WITH SLIGHT MODIFICATIONS.NOW ALSO IT IS NOT
DIFFERENT AND IS ASKING FOR THE SAME 60 PER CENT REDUCTION.
LET THE CORPORATES FLOURISH AND LONG LIVE NEO-LIBERALISM!