The Hindu : Business : Court admits TRAI's appeal

Online edition of India's National Newspaper
Friday, May 20, 2005

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Court admits TRAI's appeal

Legal Correspondent

Order on interconnectivity challenged

NEW DELHI: The Supreme Court on Thursday admitted an appeal filed by the Telecom Regulatory Authority of India (TRAI) against an order passed by the Telecom Disputes Settlement and Appellate Tribunal's (TDSAT) order holding that the telecom regulator did not have the necessary power to prescribe terms and conditions of interconnectivity.

A vacation bench comprising Justice P. Venkatarama Reddi and Justice Arijit Pasayat issued notice to Bharat Sanchar Nigam Ltd (BSNL), on whose petition TDSAT had held that TRAI had no power to interfere with interconnectivity offers of telecom operators and the agreements signed between the two operators on this issue.

The bench also issued notice to BSNL on TRAI's application seeking stay of the April 27 order of TDSAT, asked BSNL to file its reply within four weeks and directed listing of the matter after the summer vacation.

In its appeal the telecom regulator said that under the TRAI Act it was necessary for the dominant service providers to get prior approval in relation to the Reference Interconnect Offer (RIO). The BSNL submitted its offer to TRAI, which approved the RIO with some changes. BSNL challenged before TDSAT the power of TRAI to effect changes and to prescribe the terms and conditions of interconnectivity.

During the pendency of the appeal, BSNL executed about 40 agreements relating to interconnectivity. Since TDSAT passed an order in favour of BSNL, TRAI moved the apex court.

TRAI contended that dominant service providers had little or no incentive to interconnect with new service providers and interconnection being of vital importance to the telecom sector, could not be left to the sweet will of the dominant service provider.

The regulation was brought into the TRAI Act to promote expeditious and effective interconnection. Since substantial questions of law of public importance were involved in this appeal, viz., whether there was any substance in the contention of BSNL that the terms of its licence had been altered by TRAI, when no such change was made. It sought quashing of the order dated April 27 and an interim stay of its operation.

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