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This is an archive article published on December 18, 2002

SC asks TDSAT to relook WLL issue

In a major snub, the Supreme Court on Tuesday asked the Telecom Dispute Settlement Appellate Tribunal (TDSAT) to re-examine the issue of all...

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In a major snub, the Supreme Court on Tuesday asked the Telecom Dispute Settlement Appellate Tribunal (TDSAT) to re-examine the issue of allowing basic service operators to provide WLL mobile services in greater detail.

While the SC declined the cellular operators’ plea to stay the introduction of WLL-based mobile services —since many operators like MTNL and BSNL are already providing such services—it said basic service providers would be bound by the final decision to be given by the tribunal. The Supreme Court has asked the tribunal to adjudicate the issue afresh, keeping in mind the grievance of the cellular operators on the absence of a level-playing field.

What the order means is that companies like Tatas and Reliance that are planning to launch their WLL mobile service later this month can go ahead. What they will have to keep in mind is the fact that the Court has asked the tribunal to go into the issue of a ‘level playing field’ which could later translate into some concessions for the cellular operators or may even mean a higher amount as licence fees from the basic service operators.

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But the most far-reaching impact of the SC ruling is on the earlier judgement of the tribunal which was challenged in SC. The SC has been scathing in its attack on this order.

Delivering the judgement on behalf of the bench, Chief Justice G. B. Pattnaik said the tribunal ‘‘committed an error by saying that it had only supervisory jurisdiction and deciding the important issue in a bald manner without going into the intricacies of the dispute.’’

‘‘The bald conclusion of the tribunal that the cellular operators have been adequately compensated through different schemes could not be held to be a proper conclusion,’’ the three-judge bench said, setting aside the earlier verdict of the tribunal.

Stressing the need for the tribunal, the SC said it was needed to bar the jurisdiction of the civil courts from entertaining disputes relating to telecom.

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‘‘It has wide powers and there is no provision to limit TDSAT’s jurisdiction to hear disputes between licencee, licensor and the service providers,’’ Justice Pattanaik said.

The concurring judgement by Justice S B Sinha further states that ‘‘most findings of TDSAT are not supported by cogent reasoning’’. Justice Sinha has also stated that ‘‘TDSAT arrived at findings without referring to material on record.’’

The SC has asked the tribunal to keep in mind the recommendations of expert bodies like the Trai and Group of Ministers on telecom and IT (GoT-IT), which was specifically set up by the Prime Minister.

The row dates back to January 2001 when the cellular operators approached the tribunal, saying that the WLL mobile services required basic operators to seek a fresh licence allowing mobility with terms and conditions akin to cellular operators. The Government and basic operators, respondents in the case, said the WLL mobile services were available through basic services as a consequence of technology upgradation and hence should not be stopped.

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Consumer organisation Telecom Watchdog, which had intervened in the matter, had said that new cheaper services should not be stopped as they were in consumer interest.

Director General of Association of Basic Service Operators Khanna has welcomed the decision saying. ‘‘The Supreme Court has allowed the services to go ahead and has accepted the concept of limited mobility. The roll-outs planned for WLLmobile services will go ahead as planned.’’

Anil Kumar of Telecom Watchdog said the judgement was good as it allowed consumers access to an alternative technology — WLL mobile. ‘‘Now even cellphone users who have to pay Rs 1.20 for each three-minute call to a landline phone should get relief by removal of these charges and be on par with WLL mobile users.’’

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