Hutch faces penalty for PTT violation

Mobile operator told to cough up Rs 50 crore.

The Department of Telecom (DoT) may slap a penalty (a maximum of Rs 50 crore) on telecom service operator Hutch for offering the 'push-to-talk (PTT)' service without getting prior approval for offering the service.

If Hutch is penalised, it will be the second telecom operator in the country to pay penalty for offering the service. Tata Telservices, which had also offered similar service, was also fined Rs 50 crore.

PTT 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 wireless services.

As the service uses the internet backbone, telecom licence holders such as Hutch cannot offer the service. Currently, no telecom operator in the country offers this service and even Hutch withdrew the service after DOT said them a notice. Hutch executives were not available for comments

DoT had set up a committee to examine if the service offered by Hutch was a similar to what Tata was fined for and if Hutch was applicable to pay access deficit charges (ADC) for the service.

In its report submitted recently, the committee said that apart for not getting the prior approval, Hutch had offered the 'Push 2 Talk' service without providing the necessary monitoring or interception facility which is required for security purposes.

In addition, the service provider has not paid the applicable ADC for the service, DoT sources said.

The committee has recommended that "suitable action in terms of License agreement be taken against Hutch group" for the violation.

If DoT approves the committee's recommendation, a similar penalty may to be applied for Hutch also. For violation of license agreements, telecom operators can be fined up to a maximum of Rs 50 crore penalty.

Hutch started offering the service in 2004 but has stopped offering the service after DoT questioned its service. In September last year, DoT had asked Hutch to provide details on "what license the Push 2 Talk" service was offered' by it.

Hutch Essar had told the DoT that its Push-to-Talk service was being offered under the mobile service license it holds.