COAI operators seek time to clarify on rates

BANGALORE: Cellular Operators Association of India (COAI) has sought time till tomorrow from Delhi High Court to make its stand clear on airtime charge proposed by TRAI for mobile phones.

A division bench comprising chief justice S. N. Variava and Justice S.K. Mahajan, however, restated that the operators had to pass on the Rs 475 per month rental benefit to the consumers. Senior advocate Gopal Subramaniam sought time to consult his clients on the airtime rate of Rs 4 for metro centres and Rs 4.50 for others as proposed by TRAI, but the court clarified that it had not said anything new but has confirmed only what the TRAI had proposed.

Mr Subramaniam raised objection to court`s observation that the benefits received by the operators should be passed on to consumers saying that the tariff was a consequence of TRAI`s proposal but an impression was created that it had come from the court. "We have reproduced what TRAI has said," the bench said adding that TRAI`s proposal had stated that operation cost for operators would be 50 per cent of the Rs 600 monthly rent if calling party pays (CPP) scheme under which regulator had proposed to make incoming calls free, was implemented.

The court had earlier had struck down the CPP scheme under which fixed-phone users were supposed to pay extra charges if a call was made to mobile phone. Since TRAI had fixed rent at Rs 475, it was still much higher than the 50 per cent and the operators were not losing anything even after the CPP scheme was struck down by the court.