The Hindu : TTSL seeks some packages from TRAI

Online edition of India's National Newspaper
Tuesday, Dec 10, 2002

Business

Business

TTSL seeks some packages from TRAI

By Our Special Correspondent

HYDERABAD DEC. 9. Tata Teleservices Ltd. (TTSL) plans to approach the Telecom Regulatory Authority of India (TRAI) in a week or ten days, if its talks with cellular operators on `interconnect' agreement do not yield any result by then, according to S. Ramakrishnan, Managing Director.

Addressing a press conference to share his thoughts on the emerging scenario in the Indian telecom sector here on Monday, he said they were unable to achieve a breakthrough in the ongoing talks with cell operators. At the same time he hoped the issue could be thrashed out.

The company has licence for six circles and it hopes to achieve financial closure in Andhra Pradesh this month involving about Rs.1,000 crores. Most of the monies were coming from the IDBI, LIC and the SBI, he said. He was hopeful of achieving financial closure for the new circles by the middle of next year.

The four new circles are Tamil Nadu, Karanataka, Gujarat, and Delhi (official launch in Delhi on December 19). It had also taken over the Maharashtra Circle from Hughes. Delay in Tamil Nadu Government clearance for `right of way' had delayed expansion of its operations in that State, he said. A substantial portion of investment had to be held back and all activity linked to wireline work had come to a standstill, he said. While he was reluctant to talk of countering the expected competition from Reliance, Mr. Ramakrishna said they had sought TRAI approval for some packages, and would come out with them at an appropriate time. However he felt in the long term lower tariff would not help the industry, nor would it be `sustainable'. At the most one might see some attractive promotional packages, he felt.

He said TTSL was also talking to handset manufacturers and another option being considered was to set up an assembly unit, though he preferred the import route.

However the issue might take a shape only in 12 to 18 months time, and it was too preliminary to talk of it now, he said.

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