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HC suggests TRAI consult authorities before announcements

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CIOL Bureau
New Update

BANGALORE: Delhi High Court (HC) has suggested that the Telecom Regulatory Authority of India (TRAI) consult all concerned authorities before announcing any major decision. The suggestion was made after the TRAI faced an attack by the Department of Telecommunications (DoT) and the Mahanagar Telephone Nigam Ltd. (MTNL) which challenged its recent decisions on rentals, tariffs and introduction of the Calling Party Pays (CPP) system for cellular users.



The judges told TRAI counsel T. R. Andhyarujina that tariffs must be reduced for all telecom users from the date operators switched from a fixed licence fee over to the revenue sharing formula under the national telecom policy, 1999. Mr. Andhyarujina however contended that the TRAI is a statutory body and its bonafide should not be questioned.



TRAI's economic advisor Harsh Vardhan submitted that the CPP regime will increase usage of cellphone services, increase revenues of private operators and help them in bringing down operating costs per minute. Gopal Subramanium, counsel for the Cellular Operators Association of India (COAI), said there is substance in the MTNL's contention but business interests of cellular operators must be protected. Solicitor General Harish Salve appearing for the DoT said, the government will lose more than Rs 200 crore as incremental costs for installing additional equipment in case the CPP system is introduced. ''The CPP regime is against the interests of cellular and fixed line subscribers," MTNL counsel C. S. Vaidyanathan said. ''Only the interests of private cellular operators have been looked after, " he added.

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