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Data Access ISD licence suspended

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June 03, 2005 15:56 IST

The government on Friday suspended the international long distance licence of Data Access for non-payment of over Rs 200 crore (Rs 2 billion) due to department of telecom and other operators like BSNL and MTNL.

"Non-payment of more than Rs 200 crore affects the viability of other operators and is against proper conduct of telegraph and violation of clauses of the licence. Data Access has failed to perform obligation under licence including timely payment of fee and other charges due to the licensor," ministry of communication and IT said in the suspension order.

DoT suspended the licence till further orders after having served a show cause notice to data access on March 7, this year asking the company to explain why its licence be not suspended for violation of licence agreement.

Data Access had earlier proposed "a scheme under which only 25 per cent of the said amount was payable before the financial year ending 2006 and the balance 75 per cent was to be paid in equal installments over a 5-year period starting from April 1, 2006 without any interest," DoT said.

"The response of Data Access is not satisfactory as it affects the financial viability of other operators," DoT said while suspending the licence.

Data Access officials could not be contacted despite repeated attempts. The company was granted International Long Distance licence on March 27, 2002 for establishing, maintaining a working telegraphs within the scope of licence.

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