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Reliance pays Rs 1,542 crore for unified licence

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Our Economy Bureau New Delhi
Last Updated : Jan 28 2013 | 2:33 AM IST
 This will allow the company to convert its limited mobility services in 17 circles to full-fledged cellular services.

 Reliance has not paid the entry fee for West Bengal and Kolkata since it already has a cellular licence for these two circles.

 The department of telecommunications had stipulated an entry fee of Rs 53 crore for these two circles.

 The company has also been asked to pay a higher penalty for violating the basic services licence norms.

 While the telecom regulator had sought a penalty of Rs 485 crore in addition to an entry fee of Rs 1,096 crore, the telecom department revised the penalty amount to Rs 526 crore.

 However, the amount paid by the company today did not match the prescribed entry fee. While Reliance officials said the difference was due to non-payment of licence fees for the West Bengal circle, department sources said if it was found that the entire amount had not been paid, the applicant would be asked to pay the difference within three days, failing which the application would be rejected.

 In a statement issued today, Reliance Infocomm said, "We have opted to migrate to the unified licence by paying the requisite fee of Rs 1,542 crore. This will enable over 5 million Reliance IndiaMobile subscribers across the country to continue with their existing services seamlessly, while Reliance Infocomm will be able to provide new enhanced services as a result of the unified licence."

 Reliance IndiaMobile has garnered over 4 million subscribers through limited mobile services.

 Once the telecom department issues the unified licence, Reliance will become the leading mobile operator, overtaking Bharti Cellular.

 Reliance is planning to expand its services in 700 towns and cities across the country. It has GSM-based cellular operations in six circles, which will compliment the new licences.

 

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First Published: Nov 13 2003 | 12:00 AM IST

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