Vodafone moves HC against TRAI's interconnect regulations

Telecom major Vodafone Mobile Service Ltd and its group companies today moved the Delhi High Court challenging TRAI's Telecommunication Interconnect Usage Charges Regulations, 2015 by which it has fixed termination charges for wireline to wireless as zero paise and wireless to wireless to Rs 0.14 per minute.
Interconnection Usage Charges (IUC) or termination charges are payable by one telco, whose subscriber makes a call, to another whose subscriber receives the call. The charge is payable by the first for using the second's network.
A bench, comprising Chief Justice G Rohini and Justice Rajiv Sahai Endlaw, declined to give any interim relief to the telecom major saying Telecom Regulatory Authority of India (TRAI) has to be heard and also because the regulations came in February, 2015.

The bench asked TRAI to file its reply in four weeks and posted the matter for further hearing on January 19, 2016.
During the brief hearing, senior advocate K Viswanathan, appearing for Vodafone, said the regulations are illegal, bad in fact and in law, arbitrary and in gross violation of the principles of natural justice, beyond the functions of TRAI.
He said the February 23, 2015 regulations--Mobile Termination Charges (MTC) and Fixed Termination Charges (FTC) under IUC Regulation--were "ultra vires TRAI Act and were contrary to the object and purpose of its provisions to the extent that it arbitrarily and in a non-transparent manner fixes the termination charges".

Viswanathan said that it is clear that the fixation of terms of interconnectivity which includes the termination charge by TRAI cannot be zero where costs are incurred by the terminating operator and therefore, the regulations fixing the charge as zero is ultra vires the provisions of TRAI Act.

He said that TRAI itself has stated in its 2001 Regulations that the interconnection charges shall be fixed on cost basis to provide recompense to the operators for work done for termination of calls on their network.
During the hearing, TRAI said it was a dispute between
two telecom service providers (TSPs), so they should move TDSAT and added that Vodafone's petition was not maintainable.

Vodafone opposed the contentions of RJIO and TRAI and said moving TDSAT was not an efficacious remedy as the tribunal does not have a Chairperson.
It also said the issue before the court was not a dispute between two companies as it was a plea alleging inaction by TRAI.
Vodafone further said that it will amend its petition to challenge the two letters of TRAI and sought time for that.
The court thereafter listed the matter for hearing on March 10.
Earlier, Vodafone had told the court that it was aggrieved by the free voice services being provided by RJIO as it violated TRAI's tariff orders.

Vodafone had contended that inter-connection usage charges (IUC) form the floor price as per TRAI tariff orders and "one cannot go below that".
The company alleged that by providing the free voice calls and continuing to do so as a promotional offer beyond a period of 90 days, RJIO was violating IUC norms and TRAI tariff orders and regulations.
It said it was also aggrieved by TRAI's stand of allowing the alleged violation to continue.
Vodafone, in its plea, has sought a direction to TRAI to "fully implement/ensure compliance of each and all regulatory and legal principles" laid down in the tariff orders, directions and regulations by the regulator or any other authority as well as to ensure that RJIO does not violate them.