Reliance not to lose ISD licence: Govt

DoT to let off reliance with penalty in call routing row

The department of telecom (DoT) today ruled out cancellation of the international long distance (ILD) licence of Reliance Infocomm and said the proposal to impose a Rs 150 crore penalty for violation of licence terms was "good enough for now".

"DoT has given a showcause notice for a penalty of Rs 150 crore and is waiting for their response," Communications Minister Dayanidhi Maran told reporters here.

Asked whether DoT had considered cancelling Reliance's ILD licence for routing international calls as local ones, Maran said: "DoT is of the view that cancelling of the licence will cause huge suffering. They have about 800,000 subscribers. I think DoT has taken all these things into consideration and feels a penalty is good enough for now."

He also ruled out any need for a Central Bureau of Investigation (CBI) inquiry into the matter, involving Bharat Sanchar Nigam Ltd (BSNL) and Reliance Infocomm.

BSNL accused Reliance of routing incoming international calls as local ones and thereby denying payment of access deficit charges (ADC) at the rate of Rs 4.25 a minute to telecom public sector undertakings (PSUs).

"There is no need for such (CBI) inquiry. There is a loss to the two PSUs (BSNL and Mahanagar Telephone Nigam Ltd). They filed a case in the court and it should be resolved," he added.

Asked whether other private players were also indulging in routing of international calls as local ones to avoid payment of ADC and if DoT was planning to send them notices, Maran said: "The vigilance cell of DoT has been getting numerous complaints and these are being examined. If necessary, we shall take action."

He added that instances of grey market operations have been on the decline. They have become insignificant from as high as about 15 per cent of the total traffic, he said.

BSNL and MTNL have claimed over Rs 550 crore from Reliance towards non-payment of ADC and the matter is now with both the Supreme Court and the Delhi High Court.

The high court had restrained BSNL from disconnecting the points of interconnection with Reliance. BSNL then approached the Supreme Court to vacate that order.

The matter is slated for hearing on December 3 in the apex court.