MTNL flays TRAI for pvt sector tilt8217;

He also stated that the TRAI is empowered to resolve disputes among operators but cannot prescribe tariffs and the way interconnection charges should be shared by them.

Vaidyanathan was appearing before a division bench comprising Chief Justice S N Variava and Justice S K Mahajan on petitions filed by the MTNL and Telecom Watchdog, a Delhi-based organisation.

DoT joined the MTNL petition while the Cellular Operators Association of IndiaCOAI filed an intervention application in the court.

Vaidyanathan said that in case a fixed phone user calls a person on cellular phone, an additional Rs 1.20 interconnection charge would be levied in addition to call charges of Rs 1.40 paid to the MTNL. Nearly 66 per cent of this would go to cellular operating companies.

8220;There is no country in the world in which basic operator will receive less revenue than a cellular operator. India is the sole exception,8221; said Vaidyanathan, adding that the CPP system is being scrapped even in the United States.

Vaidyanathan added that the operators in metropolitan cities are already making enough profits to buy out distressed operators in state circles. The CPP further increases their margins by raising the monthly rentals from Rs 156 to Rs 600 now.

The judges told TRAI counsel T R Andhyarujina that charges must come down for all telecom users from the date operators switched over to the revenue sharing formula from a fixed licence fee under the NationalTelecom Policy 1999.

Solicitor general Harish Salve, appearing for the DoT, said the government will lose more than Rs 200 crore as incremental costs for installing additional equipment in case the CPP system is introduced.

Meanwhile, TRAI8217;s economic advisor Harsh Vardhan submitted that the CPP regime will increase usage of cellphone services, increase revenues of private operators and help them in bringing down operating costs per minute. The case will continue hearing tomorrow.