TDSAT asks MTNL to cut infra charges

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) today directed state-run Mahanagar Telecom Nigam Ltd (MTNL) to reduce the infrastructure charges collected from private operators and asked the Telecom Regulatory Authority of India (Trai) to frame guidelines for deciding such charges.

Allowing an appeal of Reliance Infocom Ltd (now Reliance Communications), a TDSAT Bench headed by Justice Arun kumar said MTNL had increased these charges exorbitantly in an "arbitrary and unreasonable manner."

The tribunal also held that infrastructure charges should not be increased more than 10 per cent annually and directed Trai to frame guidelines for these charges.

Infrastructure charges are paid by private telecom firms to MTNL and Bharat Sanchar Nigam Ltd as rental and maintenance fees to station their link equipment in the premises of the state-owned companies to get connected in their national long distance and international long-distance networks.

The tribunal directed MTNL to return the extra amount charged on Reliance Infocom within 30 days. It rejected MTNL's contention that infrastructure charges were a rental issue and had nothing to do with telecom operations.

Justice Kumar said since the matter was related to interconnection norms and was a dispute between two telecom operators, it came under the tribunal's purview.