DoT issues show-cause notice to Tata Tele

The Department of Telecom (DoT) has issued a show-cause notice to Tata Teleservices, seeking an explanation of alleged violation of licence conditions by the company on its fixed-line wireless phone service 'Walky'.

Tata Teleservices has positioned the Walky phone as a 'mobile phone' on land line rates; going by the regulation the private companies are liable to pay a levy called Access Deficit Charge (ADC) on mobile telecom services to BSNL.

According to sources, the DoT sent the notice to private operator on January 7 and has asked the company to answer its the queries.

The DoT has taken the step after BSNL objected to Tata's campaign about their Walky phone.

The Interconnect Usage Charges and Access Deficit Charge regime provide different treatment for calls from mobile and fixed services, including wireless fixed.

Asked if the DoT was considering imposing penalty on Tatas for violating the licence terms and conditions, sources said, "Not at this stage and the show-cause notice has been issued only to seek an explanation".

The Telecom Regulatory Authority of India has also issued a directive to Tatas as well as Reliance Infocomm that they withdraw their advertisements on Walky and 'unlimited cordless' respectively.

"It has been brought to the notice of the Authority that Tata Teleservices have advertised their fixed wireless service as Walky with the slogan 'freedom of mobility at landline rates'; the TRAI is of the view that the said advertisement with the said slogan is misleading as consumers are led to believe that mobile services are offered when actually fixed wireless services are offered," the directive to Tatas said.