Trai Reserves Decision On Mtnl Cell Foray

The Telecom Regulatory Authority of India (TRAI) yesterday reserved its judgement on Mahanagar Telephone Nigam Ltd (MTNL)s entry into cellular services in Mumbai and Delhi. Cellular operators in the country have challenged the public sector undertakings cellular foray.

The regulator is expected to pronounce its judgement on the issue next week, top TRAI sources said. Chairperson S S Sodhi made the announcement reserving judgement after hearing arguments of additional solicitor general K N Bhat representing DoT, MTNL counsel Deepankar Gupta and Gopal Subramanium who was arguing Cellular Operators Association of India (COAI).

The preliminary issue addressed yesterday was whether it was mandatory or discretionary for the government to seek a recommendation from TRAI for licensing a new service provider. The lawyers of Bharti Cellular and Sterling Cellular representing the cellular industry have argued that MTNL is a new service provider and therefore should have the permission of TRAI.

 

The department and MTNL combine argued that it was the governments discretion to seek TRAI recommendations or not. To this Sodhi reacted, What remains of power of recommendation of the regulator if the government can do whatever it likes, whenever it likes.

MTNLs lawyer Gupta was of the view that the PSU had always been mandated to provide mobile phone services. It was just that when MTNL introduced the service in 1985, the technology available was that of a car-phone service, not the current cellular service. In that light, he argued, MTNLs foray was not a new service.

MTNL had earlier circulated pages from the 1986/1994 Delhi telephone directory which contained advertisements of the companys paging and mobile phone services, and copies of the bills of mobile phone subscribers, to support the contention that it was not a new cellular service provider.

Its radio mobile phone service provided normal telephone service in a moving vehicle within a 20 km radial distance from Connaught Place in Delhi.

However, the counsel for the cellular operators Subramanium contended that the mobile car phone service provided by MTNL from the late-1980s did not qualify as digital cellular mobile phone service based on the GSM (global standard for mobile applications) 900 standard.