The Hindu : TRAI notice to cellular firms

Online edition of India's National Newspaper
Friday, Jan 17, 2003

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TRAI notice to cellular firms

By Sandeep Dikshit

NEW DELHI JAN 16. The conflict between phone companies became more knotty with the Telecom Regulatory Authority of India (TRAI) issuing a show cause notice to cellular companies and the Bharat Sanchar Nigam Limited (BSNL) entering the fray to become the fourth party in the dispute.

Thus TRAI, BSNL and limited mobility companies are ranged (though not collectively) against an eight-company front of cellular companies. The contention is over whether cellular companies should connect with limited mobility companies without signing an interconnection agreement.

The day began with TRAI issuing show-cause notices to cellular companies which had blocked limited mobility calls from the Tatas. They have been asked to appear before TRAI on January 20 and endorse compliance with an earlier directive asking them not to block limited mobility calls. The TRAI issued the notice after cell companies ignored its instructions and also blocked calls from another limited mobility company. Company officials also held a press conference and accused TRAI of favouritism.

The notice has asked cell companies to appear with a statement of compliance or give a suitable explanation and be ready for action. Cell companies have maintained that they will not interconnect with limited mobility companies till an honourable interconnect rate is agreed upon. The absence of a negotiated rate is like "going to office without knowing what the salary is''. The practice of paying Rs. 1.20 per three minutes for every call and receiving nothing is confined to BSNL/MTNL. They cannot finance the operations of limited mobility companies by paying this amount to limited mobility companies as well.

On the other hand, BSNL, which cornered most of the Rs. 1,600 crores shelled out by cellular companies as access charges (Rs. 1.20 per 3 minutes) in 2002, has threatened cell companies with disconnection.

Its grouse is that calls from limited mobility companies transiting through its network are being blocked by cell companies. Limited mobility companies are, therefore, refusing to pay interconnection charges to BSNL since their calls are not being completed.

BSNL, being a Government company, looks up to its Minister for directions, especially in a major dispute such as this. The Telecom Minister, Pramod Mahajan, is at a distance from the dispute.

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