The Hindu : Business : Cell companies take on telecom regulator

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Tuesday, Sep 07, 2004

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Business

Cell companies take on telecom regulator

By Our Special Correspondent

NEW DELHI, SEPT. 6. Days after threatening to stop paying access deficit charges, cellular companies have once again taken on the Telecom Regulatory Authority of India (TRAI) for not hearing the views to a battery of experts flown in especially for an open house session today on spectrum related issues. Although the TRAI later agreed to meet the experts fielded by cellular companies, the Cellular Operators Association of India (COAI) said this was not the same as being heard at the open house attended by all key players and called on the TRAI to reschedule the discussion.

The latest round of confrontation between cellular companies and TRAI began when Bharat Sanchar Nigam Limited (BSNL) announced a reduction in mobile charges and STD rates. The cellular companies claimed the bonanza to BSNL's subscribers was being financed by the access deficit charges (ADC) paid by them to BSNL. They have threatened to stop paying ADC from September 10; the day BSNL's new rates would take effect.

Today, the two sides were at loggerheads after TRAI denied cellular companies an opportunity to discuss the issue of the US PCS band and were instead asked to make a separate presentation to the TRAI on the subject. "It is our firm belief that the dangers and pitfalls of consideration of the US PCS band should be discussed in an open forum and our views should be heard and understood by all stakeholders. This is also warranted under Section 11(4) of the TRAI Act, which requires that the Authority shall ensure transparency while exercising its powers and discharging its functions,'' said the COAI Secretary General, T. V. Ramachandran.

"In the open house discussions here today, we once again sought to introduce this issue and requested the TRAI for permission to allow our panel of several international experts to speak on this issue. As a result, we were constrained to withdraw from the proceedings today.''

Commenting on the opportunity given by TRAI to discuss the issue later in the day, he said this meeting cannot be a substitute for a full public, transparent discussion of this critical issue. "We would thus like to hereby request the TRAI to reschedule the open house discussion and transparently take up this matter with the full participation of all stakeholders,'' he added.

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