SC directs private telcos to pay BSNL for ports

The Supreme Court today directed private telecom operators to pay state-owned BSNL Rs 39,000 for every point of connection (ports) as interconnection usage charges (IUC), as an interim arrangement, and asked the PSU not to disconnect the service.

Hearing a petition filed by GSM operators' association Cellular Operators Association of India (COAI) against BSNL's demand for Rs 55,000 per port as IUC, the apex court said the arrangement would be continued till August 2, when the case comes up for hearing again.

Passing an interim order, a bench headed by Chief Justice S H Kapadia directed COAI to pay Rs 39,000 to BSNL as IUC to get connected into the PSU's network.

The apex court directed BSNL to file an application with details of the amount which it wants to recover from the private telecom operators which paid less IUC for the period between February 2007 and May 2010. Meanwhile, the bench also asked BSNL not to disconnect private telecom operators from its network till August 2, the next date of hearing which was accepted by Solicitor General Gopal Subramanium, appearing for the PSU, who gave a statement on record regarding it.

"Pay them Rs 39,000 and there would be no disconnection. But then you would also have to come back with a proposal for the gap amount (claimed by BSNL)," the bench, which also consisted of Justices K S Radhakrishnan and Swatanter Kumar, said.

The court also clarified that the cellular operators would have to pay the differential amount to BSNL. "Somehow, you (COAI) would have to pay. You cannot say that I would not pay for which the regulation has been struck down."

The court also said it would conduct hearings expeditiously on this matter.

The apex court's direction came over a petition filed by COAI, which had challenged the order passed by sectoral tribunal TDSAT on May 22.

The Telecom Disputes Settlement and Appellate Tribunal has set aside Telecom Regulatory Authority of India’s (Trai's) notification fixing the IUC at Rs 39,000 against Rs 55,000 charged by BSNL, which was prevailing since 2001.

In its order, the tribunal had directed Trai to start the process of fixing the port charges afresh. Meanwhile, it also directed BSNL not to collect the additional port charges from the operators due to them for the period between February 2007 and May 2010.

However, BSNL went ahead and wanted to recover Rs 300 crore that was short-paid by the operators as IUC between 2007 and 2010.