DoT sets riders to telecom package

NEW DELHI, JULY 19: While it seems very clear from the recent Cabinet decision to bail out various telecom operators that the Telecom Reg...

NEW DELHI, JULY 19: While it seems very clear from the recent Cabinet decision to bail out various telecom operators that the Telecom Regulatory Authority of India TRAI will be the deciding authority on most issues such as what the revenue-sharing fees will be or the number of operators in each circle, the Department of Telecommunications DoT is hell-bent on trying to reduce the TRAI8217;s powers. Indeed, it is trying to arm-twist telecom operators, telling them that if they wish to accept the new telecom package, they have to go along with the DoT on this as well.

Last week, while officially telling the telecom operators the details of the new package, telecom secretary Anil Kumar said that the package was contingent on them withdrawing all cases filed by them in various courts. Apart from the cases against the DoT on their specific licenses, however, one of the cases that pertains to the jurisdiction of the TRAI. While Kumar said that this case would also have to be withdrawn, the operators were reluctant to do so, and pointed out that this case did not relate to license matters and so could not be linked to the overall telecom package cleared by the Cabinet last fortnight.

In March last year, the TRAI had stalled MTNL8217;s cellular foray on the grounds that its licence for these services was not valid. However, the DoT, indignant with this judgement had taken the matter to the Delhi High Court. In July, a single judge had given a ruling upholding MTNL8217;s licence and declared TRAI had no jurisdiction over licensing issues. Soon after this, however, the cellular operators went in for an appeal in the issue and the case is still pending with the Delhi High Court. This is the case that the government now wants them to withdraw.

The operators, however, fear that if they take back this case, then the DoT or the MTNL would be able to walk all over them whenever they wished 8212; in essence, if they withdraw the case, this would imply that they are going along with the government8217;s view that the TRAI has no jurisdiction in matters pertaining to license issues.

Interestingly, the operators are also challenging the definition of the term outstandings8217; as it includes interest charges of around Rs 280 crore for the period of six months that the effective date of licences have been changed 8212; operators have been asked to clear all outstanding dues if they wish to move to the new package.

8220;This would imply that for the period that I am being excused from paying licence fee itself, I have to pay interest charges thereon,8221; explains an agitated cellular operator.

The explanation given by the DoT on these issues is that the Cabinet decision mentioned all of these points and therefore these would have been complied with in totality. Operators however, have written to the government saying that the DoT8217;s note prepared for the Cabinet did not contain these details of the break-up of the outstandings and now holding this up for the industry.