| Bharti had contended that it was entitled to carry long distance call traffic on its own up to the point where its network was available "" a move which would have resulted in huge savings to the company on payment of interconnection charges to BSNL. |
| For example in Madhya Pradesh, if the company's subscriber makes a call from Indore to some other place, Bharti contended that it was entitled to carry that call to its farthest point Ujjain through its own network. |
| It contended that it would transfer the calls to BSNL in Ujjain only. Bharti Telnet, a sister concern of telecom major Airtel, has licence to provide basic telephone services in Madhya Pradesh and Haryana. |
| As per the licence agreement, state-run Bharat Sanchar Nigam Ltd (BSNL) was to provide national and intercircle links to the customers of Bharti Telnet. |
| Through their interconnection agreement, Bharti was also connecting calls made by its subscribers to the BSNL's network on revenue share basis. |
| Later a dispute arose over the terms and condition of the agreement. Bharti claimed that as per the agreement it was entitled to carry all calls made by its subscribers to the far-end points on its network before transferring it to BSNL. |
| Bharti's stance was opposed by BSNL, which termed it as breach of contract. It contended that as per the agreement, there can be no parallel Point of Interconnection (PIO) in one circle. |
| Bharti knocked the telecom regulator TRAI's door on the matter, but the regulator favoured BSNL and said that it was working in accordance with the licence agreement. |
| Bharti then took the issue to the Telecom Disputes Settlement and Appellate Tribunal, which also rejected the case. Lastly, it went to the Supreme Court, which sent back the issue to TDSAT again for a fresh hearing. |
| However, the tribunal rejected it again, saying: "We do not see any reason to interfere in the TRAI determination that intermediate handover of calls... Is not in conformity with the licence agreement". |
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