GSM players' cartel against BSNL, MTNL: Trai

Telecom regulator Trai has said private GSM operators were acting as a "cartel" against MTNL and BSNL and charging higher tariffs from customers for calls terminating in the networks of the two state-run companies.

The Telecom Regulatory Authority of India's contention came before the tribunal TDSAT on the case over the issue of differential tariff being charged by GSM operators for calls in four networks where direct connectivity has been allowed.

"These GSM operators are acting as a cartel against the state-owned MTNL and BSNL. And are accusing BSNL of having a monopolistic attitude," TRAI counsel Meet Malhotra said before the Telecom Disputes Settlement and Appellate Tribunal.

The government has permitted direct connectivity between Mumbai and rest of Maharashtra, Kolkata and West Bengal, Chennai and rest of Tamil Nadu and two parts of UP (East and West). But despite this, the operators were charging higher tariffs for calls terminating on BSNL's CellOne network.

"These operators have still not taken the lease line between the two circles of the states and are routing their calls through National Long Distance (NLD) service operators," Malhotra contended. He added that the operators were themselves responsible for high call costs.

Cellular Operators Association of India (COAI), the GSM industry body, had contended that since there was no direct connectivity between their networks, calls had to be routed like STD calls. This led to higher tariffs, it argued.

COAI had earlier challenged in the TDSAT a directive by Trai- issued on February 26 to remove differential tariffs for calls terminating on the BSNL/MTNL network in the four states.

Trai argued that it was the duty of the operators to provide lease lines to BSNL and the PSU's role was limited only to providing them ports to connect them.

"If they can establish connectivity between their networks through lease lines, then why not with BSNL... They are complaining about the delay in circuit, but who would provide these circuits to BSNL," Malhotra contended, adding that COAI has furnished a wrong statement in its application.

"Instead of lease lines, these operators are complaining to the department of telecommunications and are paying more access deficit charge to NLD providers," the counsel said.

During the proceedings, BSNL contended there was no fault from its side in providing interconnection to GSM operators and the company was providing full support.

After two consecutive days of marathon hearing, TDSAT has reserved its order on COAI's petition.