"The home ministry has refused to accept the 10 per cent verification for security reasons," sources said.
Meanwhile, with Tata Teleservices and other operators sharply divided on the issue, the government will work out a compromise formula that takes into account the concerns of the industry as well the security issue.
"It needs to be understood that one person cannot get thousands of connections against his name," a senior DoT official said. Tata Teleservices wants verification of the entire subscriber base to be undertaken.
Industry sources have expressed doubts over this proposal finding favour on account of heightened security concerns.
"The verification drive is a time consuming exercise and involves considerable costs. However, instead of going for a 10 per cent verification, the industry should ask for more time and possibly seek appropriate subsidy from the government, but commit itself to the full drive," sources added.