Interconnect jolt to GSM players

Telecom tribunal TDSAT today rejected GSM mobile operators’ petition challenging Trai’s direction to remove differential tariffs for calls ending in BSNL and MTNL networks.

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) bench, headed by Justice Arun Kumar, said there was no merit in charging higher tariffs.

“We do not agree with the arguments put forward by COAI for charging higher tariff,” the tribunal said in its judgment, which comes as a setback to GSM mobile operators.

However, the tribunal directed BSNL and MTNL to provide leased lines for interconnection between the operators in a time-bound manner.

The Cellular Operators Association of India (COAI), the GSM body argued their cost was much higher due to absence of direct connectivity in intra-circle calls. These had to be routed like STD calls. This necessitated higher tariffs, it said.

“We have to pay more for our call if it originates from our network and terminates in BSNL’s or MTNL’s,” said COAI, adding that the nature of call becomes different if it terminates in BSNL’s network.

COAI had challenged Trai’s directive on February 26 to private cell operators to stop charging differential tariffs for calls terminating on the BSNL CellOne network in four states.

In these four states, the government has permitted direct connectivity between Mumbai and rest of Maharashtra, Calcutta and West Bengal and similarly between Chennai and rest of Tamil Nadu and two parts of Uttar Pradesh (east and west).

However, operators still charged higher tariffs for calls terminating in BSNL’s CellOne network.

“These operators have still not taken the lease line between the two circles of the states and are routing their calls through national long distance service operators,” said the Trai counsel, adding that the operators were themselves responsible for high call costs.

Earlier, Trai had accused private GSM operators of acting as a “cartel” against MTNL and BSNL and charging higher tariffs from customers for calls terminating in the networks of the two companies.