MTNL moves HC for early hearing

MTNL had unveiled its plans to start cellular services in Delhi and Mumbai during its GDR issue in 1997. However, private cellular operators in Delhi and Mumbai opposed the company’s entryinto the field as it had an “unfair advantage” over the other private companies, they alleged. The companies first lodged a complaint with the Telecom Regulatory Authority of India (TRAI) which even cancelled the licence for cellular services given by the Department of Telecommunications (DoT) to MTNL in March last year.

Soon after, DoT challenged the TRAI’s jurisdiction, in the Delhi High Court, in matters pertaining to “licensing” which the DoT argued was solely in the domain of the Government — the DoT in this case. The DoT won the case in Justice Usha Mehra’s court in July last year but the private operators went to the High Court’s division bench in appeal against Justice Usha Mehra’s order.

MTNL has two options, one is to get an early verdict for their case from the Delhi High Court, to settle the issue once and for all, or to get the new National Telecom Policy currently pending with the Group on Telecom (GoT). The GoT may just take a policy decision to allow MTNL as the third operator inDelhi and Mumbai apart from the two private ones already present in each of these cities.

However, both the routes hold little hope for MTNL as the Courts may take their own time and the GoT’s track record in meeting deadlines is not too encouraging. The GoT was supposed to submit its final report by February 19. However, sources in the telecom circles put that date beyond mid-April. Either way, MTNL may have a long and worrisome wait.