Trai, TDSAT on collision course

The recent tariff hike by three private cellular operators appears to have ignited a turf war between the Telecom Regulatory Authority of India (Trai) and the Telecom Disputes Settlement And Appellate Tribunal (TDSAT), with the regulator contending that the issue does not come under the tribunal's jurisdiction.

"The TDSAT has no right to pass any direction because the dispute involved is not covered under Section 14 of the TRAI Act. The TDSAT could only entertain against the TRAI order," Additional Solicitor General Vikas Singh, appearing for the telecom regulator, said.

Trai also said it was not the right time to step in as price hike was done only recently. Admitting the petition filed by Delhi-based NGO Telecom Watchdog against the tariff hike, the TDSAT issued notices to Trai, Bharti Airtel, Vodafone-Essar and Idea Cellular.

Last week, the TDSAT had pulled up the telecom regulator for not intervening in the issue as the price hike had direct bearing on users. On the Trai's remark that it was not the right time to step in, a TDSAT Bench headed by Justice Arun Kumar said: "Keep this aside... It's a matter of consumer interest. Do something, otherwise players would resort to tariffs hike constantly."

Later, Trai sought to justify the present prices, saying that due to intense competition call charges had come down from Rs 16 a minute a few years ago to one rupee at present.

"Apart from roaming everything is going down. And there is forbearance policy (means tariffs are market-driven) but we are looking into the issue," Singh said.

Reacting to this, the TDSAT Bench said: "Now the forbearance is going the other side."

"The rates have gone down and service is getting poorer and suddenly prices are going up now," the bench observed.

On this Trai contended that the price hike was done by only three GSM operators, while in CDMA, Reliance had slashed its price. It also added that the petitioner had wrongly informed that Bharti Airtel, Vodafone Essar and Idea had a combined 86 per cent of the connections. "They consist only 46 per cent of total consumers and if they increase their price then consumers have other options also," Trai said.

The TDSAT has directed Trai and the three operators to file their reply and posted the case for next hearing on November 13.

"To encourage competition, we have suggested that there should be no cap on the number of players in any circle," Trai said, contending that consumers were now getting the best of the deals.

Admitting the request of the telecom companies, the tribunal also directed Telecom Watchdog to file an affidavit by its customers who have grievances, bearing their cell phone numbers and plans opted by them.