DoT notices to Hutch, Aircel Digilink

The Department of Telecommunications (DoT) has issued show-cause notices to GSM operators Hutchison Essar and Aircel Digilink for launching push-to-talk (PTT) services in the country.

The department in its notice has alleged that the companies have violated the terms and conditions of the cellular mobile telephone service (CMTS) licence by launching the services.

In its letter to the companies, the DoT said the service providers had not taken prior approval for launching the services. They had "possibly not provided monitoring or interception facilities as needed by the security requirement".

These wereviolations of licence agreement condition under the CMTS agreement, it said.

PTT is a service that allows mobile users to connect to other mobile users for voice and messaging service by pressing a single button, similar to hotline calls as in wired services. The services are comparatively cheaper as it uses the Internet backbone in the country, but the Telecom Regulatory Authority of India (Trai) was of the opinion that this was against the licence agreement, apart from being a concern to national security.

The notice was issued to Hutch-Essar for providing PTT services in Andhra Pradesh, Chennai, Karnataka, Punjab and Uttar Pradesh (West), while that to Aircel was for UP (East) and Rajasthan.

These circles are also operated under Hutch brand, with Essar group acquiring stake from C Sivasankaran earlier.

The department also came down heavily on the two companies, stating they did not pay the "applicable Access Deficit Charges (ADC)" on the PTT services.

This, according to the DoT, is a violation of the interconnect user charges (IUC) regulation issued by Trai.

The show-cause notices were signed by DoT ADG (value-added services-II) B L Panwar, with a note that it was done on behalf of the President of India.

The notices, which has sought a reply within 15 days, has also questioned "why necessary action as per terms and conditions of the licence agreement" should not be initiated against both Hutchison-Essar and Aircel.

When contacted Hutchison-Essar Managing Director Asim Ghosh said that the company has not received anything so far.

"We are yet to receive any intimation from the DoT. Our product was never a PTT, and we had informed DoT when it had asked for our views. We believe that the DoT was satisfied with our explanation and we are yet to hear anything from them," Ghosh said.

The DoT had earlier sought clarifications from Hutchison-Essar and Aircel Digilink on PTT services offered in the country, and the show-cause notice was based on the replies given by the companies from time to time.

Earlier, Tata Teleservices (TTML) was also penalised for providing PTT services, and the company discontinued it.

Trai had also imposed a Rs 50-crore fine on the company but it had moved Telecom Disputes Settlement and Appellate Tribunal, which rejected the appeal. TTSL then moved the Supreme Court of India, before which the case is pending right now.