Private telecos approach TRAI, say disconnection to hit BSNL -Governance Now

Private telecos approach TRAI, say disconnection to hit BSNL

Operators allege that the PSU was not cooperating with the industry players

PTI | September 22, 2011

Private telecom operators on Tuesday said they have approached the regulator TRAI to resolve the ongoing network disconnection issue with BSNL and alleged that the PSU was not cooperating with the industry players.

"We have given our representation to TRAI to issue an order. TRAI has taken our case for legal consideration. Hopefully, something should happen by September 26," GSM industry body COAI Director General Rajan Mathew told PTI.

Mathew added that BSNL should work in public interest and wait for recommendations of Telecom Regulatory Authority of India (TRAI) on interconnect usage charge, which is under process. BSNL had asked private operators to pay Rs 165.62 crore IUC charge in Maharashtra and Rajasthan by September 19 or face disconnection from BSNL network.

Industry bodies COAI and CDMA have said BSNL Chairman and Managing Director has given them time till September 26 to make the payments. Private players alleged that BSNL is demanding erroneous termination charges from private players which is against TRAI's recommendations.

"Till the time TRAI does not come up with fresh recommendations on IUC, its recommendations on IUC given in 2009 stands," CDMA industry body AUSPI Secretary General S C Khanna said.

On BSNL's remark that some players have paid the amount demanded by the company, Khanna said small players who have less amount to pay may accept the charges but big players will not agree to the demand. He added that BSNL subscribers will suffer the most in the event of disconnection of network compared to private operators.

"Since 1998, I have been in this association and we have always received disconnection threat from BSNL. It started from the time BSNL had 76 per cent market share but now they have 14 per cent market share. The muscle they used to flex no longer exists," Khanna said.

He said in case BSNL disconnects private operators from network, BSNL customers will not be able to call or send SMS to customers of other operators, while customers of other operators will be able to connect mutually.

"We are not worried, but telecom industry is going through a bad phase. Margins have declined. BSNL is making loss and any lacuna in service will make them suffer more," Khanna said. According to private players, BSNL has demanded termination charges of up to 65 paise per call from them, which is against TRAI's IUC norm of 2009 that states the charges to be as 15 paise per call.

Termination charges are a part of IUC which an operator pays to the other for landing calls of its user on the other players network.

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