Hearing On Mtnls Cellular Foray Today

Todays hearing of the Bharti Cellular versus department of telecommunications (DoT) case before the Telecom Regulatory Authority of India (TRAI) promises to be eventful. This is the first hearing against the department that the regulator is taking up after the former sought to clip its wings through a cabinet note.

TRAI is hearing a petition filed by Bharti representing cellular operators opposing Mahanagar Telephone Nigam Ltds (MTNL) entry into cellular services in Delhi and Mumbai.

Sources said that the government read DoT is likely to harden its stance before TRAI. In the last hearing before the regulator on January 13, additional solicitor general U N Bhat had refused to be pulled into an argument with TRAI chairperson S S Sodhi over the issue whether the regulator had a role in recommending the entry of a new cellular services provider or not.

 

Bharti Cellular has contended that under Clause 11 of the TRAI Act, 1997, permission of the regulator is required for entry of a new service provider. The Act gives TRAI the power to recommend the need and timing of a new service provider as well as recommend terms and conditions of licence of the new service provider.

Today, however, sources following the case proceedings said, the counsel for DoT may adopt a midway stance by saying that TRAI did indeed have the right to recommend the entry of a new service provider, but such advice was not binding on DoT. The government has maintained that it is the licensing authority in telecom services.

The cellular operators, on their part, intend to contest the DoTs claim that MTNL is not a new (cellular telecom services) provider. In the last hearing, Bhat had sought to drive home the departments contention that MTNL has been offering cellular services as evident by its AMPS-based car telephone service.

Telecom secretary A V Gokak had told presspersons last year that MTNL was licensed to start cellular services way back in 1985. However, the service had not been included in the companys objectives when its memorandum of association was drawn up in 1986-87.

In documents such as bond offer letters, MTNL has indicated that it intends to start cellular services, but this is not contained in its annual reports.

On January 6, TRAI had stayed MTNLs entry into cellular services in response to the cellular operators petition. It upheld this order during the hearing on January 13.

Sodhi said, the crux of the issue is whether it is mandatory or discretionary for the telecom department to have a recommendation from TRAI about the timing and introduction of new service provider.