MUMBAI, SEPT 20: A three-way tussle among Department of Telecommunications (DoT), Mahanagar Telephone Nigam Ltd (MTNL) and the basic telephone operator, Hughes Ispat Ltd (HIL) is threatening the existence of the recently launched network of HIL. The DoT has asked MTNL, operators of Mumbai telephones, to switch off HIL's telephone switches at Worli in Mumbai due to technical deficiencies and other irregularities in the HIL network.While DoT has also instructed Pune telephone offices to do the same, according to top level MTNL sources, though ordered to switch off the services, MTNL is reluctant to do so, simply for fear of being accused of using its monopoly position to harass a new entrant. However, MTNL sources say if HIL fails to rectify its problems immediately, it will have no option but to comply with the DoT instructions.It is learnt that MTNL was not supposed to grant connectivity to the HIL network until it has a clearance from the Telecom Engineering Centre (TEC), following which the licensingauthority at DoT grants a license. The DoT is understood to have sent at least five messages to HIL pointing out the lapse in procedures and other formalities (these were dated 22/1/99, 15/4/99, 31/5/99 and 22/6/99) deficiencies the last one being on September 10.The DoT's objections are: That there are technical deficiencies in HIL's bulk billing procedures which it demanded, should be resolved by September 15. These have yet to be rectified. That MTNL had erred in connecting the HIL network without a proper sanction by the licensing authority. There is no explanation why the MTNL had connected its competitor in such a hurry. HIL has failed to pay up its license fees amounting to a hefty Rs 50 crores for operating the Karnataka circle.It is not that HIL has not communicated with DoT. HIL has taken the stand that its switch at Navi Mumbai has been cleared by the licensing authority and that once a switch is cleared, it does not need separate clearance from the licensing authorityfor each new switch. However, DoT's contention is that the switch at Worli has different specifications from the one at Navi Mumbai. They allege that the Navi Mumbai switch has also has been changed after the technical clearance.According to sources, DoT has obtained legal advice to back its charge against the private operator and has conveyed to HIL that it has violated licensing conditions. DoT now wants MTNL to switch off the connectivity with immediate effect.HIL has tapped some of MTNL's top commercial accounts at South Bombay by offering better services and technology. MTNL which is gleeful at the DoT communique is, however, afraid of losing the perception battle by switching off the connectivity starting today, as demanded by the licensing authority.When contacted, a top official of Hughes Ispat said that they will move the court if DoT resorts to switching off its connections. ``We are in constant touch with DoT and MTNL officials to sort out all the pending issues. We have also received TEC`ready to service' certificates for our exchanges. hence any kind of unilateral move will cause immense harm to our customers and create a panic situation,'' he said.The company said DoT has not taken any decision on its request to hive off Karnataka circle into a separate company despite financial institutions refusing to take exposure in a company which has bid as one company for the two circles. ``We told them that it is difficult to raise funds to commence work in the Karnataka circle unless we get the permission to operate as two separate companies with same equity structure. yet they are not taking any decision which can hit our long term profitability,'' he said.
