Sibal sets up committee on delays in mobile service roll-outs

Press Trust of India

BD Narayankar & Anmol Khurana

New Delhi, July 16: Against the backdrop of allegations of favouring Reliance Communications by reducing penalty on the company, Telecom Minister Kapil Sibal on Friday set up an enquiry committee under Telecom Secretary to look into cases of delay in the rolling out of mobile services as provisioned under the USOF scheme.

"I therefore consider to set-up a committee under chairmanship of Secretary, Telecom, including members of USOF, Finance and legal advisor. The committee may consider all aspects and suggest appropriate action that may be required in the facts and circumstances of the cases of delays," according to an internal note by Sibal.

He has asked the committee to submit its report within eight weeks.

In 2007, a scheme was launched under Universal Service Obligation Fund (USOF) to provide subsidy support for setting up and managing 7,871 number of infrastructure site (telecom towers) in 500 districts in specified rural and remote area.

Telecom companies, Bharti Airtel, BSNL, Aircel, Idea Cellular, Reliance and Vodafone participated in the scheme.

However, DoT found that Anil Ambani owned RComm violated terms and conditions of the scheme by switching off mobile services in an unauthorised way in 13 circles.

DoT proposed penalty of Rs 650 crore on RComm which Sibal reduced to Rs 5 crore.

He later clarified that the Rs 5 crore penalty on the ADAG firm was as per the agreement between the USOF and Reliance.

"The DoT has nothing to do with the penalty as the company had not violated the rules of license conditions," Sibal said.

The minister added that the file reached him on February 18 this year, and RCom had already restored the services two days prior to that.

He said he gave instructions to impose the penalty as per the provisions of the agreement and did not himself decide the amount.

An NGO, Centre for Public Interest Litigation (CPIL) has filed the application in the Supreme Court seeking CBI probe against Sibal for allegedly favouring private firm by abusing his position to over-rule the unanimous view of senior DoT officials.

The Apex court bench hearing the litigation did not pass any order on it.

Links

http://www.thehindubusinessline.com/industry-and-economy/info-tech/article2235733.ece

http://zeenews.india.com/business/news/news_content.aspx?newscatid=4&newsid=27164

http://www.moneycontrol.com/news/current-affairs/sibal-setsprobedelaysmobile-service-rollouts-_566070.html

http://articles.timesofindia.indiatimes.com/2011-07-15/india-business/29777143_1_kapil-sibal-telecom-towers-usof

http://billionaires.forbes.com/article/0dFK13paq7fJl

http://www.livemint.com/2011/07/17180816/Sibal-forms-panel-to-probe-del.html?h=B

http://www.money-guru.co.in/money/content/sibal-sets-probe-delays-mobile-service-rollouts