TRAI to devise alternative CPP scheme, incoming calls not free

BANGALORE: The Delhi High Court has dashed the Telecom Regulatory Authority of India's (TRAI) proposed inter-connection charges for cellular mobile service providers and the proposed calling party pays (CPP) regime, in which incoming calls to mobiles were to be made free.

The court also directed TRAI to devise an alternative scheme to replace the CPP regime, after consultations with all service providers including Mahanagar Telephone Nigam Ltd (MTNL) and the Department of Telecom Services (DTS). TRAI's adjudicatory powers on a dispute between service providers can be used only when the parties fail to arrive at a decision, a Division Bench comprising Chief Justice S.N. Variava and Justice S.K. Mahajan observed.

The proposed inter-connection charges of free incoming calls to mobiles was challenged by a consumer organisation as well as the MTNL which argued that if the new order was implemented, they would have to pay more money to cellphone firms as part of a revenue-sharing code and DoT also argued that it would have to install additional equipment costing Rs 200 crore if the CPP system was to be implemented. CPP was first supposed to have come into operation last August, but was pre-empted by a court case.

The defendant has the option of moving the supreme court and a decision on it will be taken after further legal consultations, a TRAI official said. Today's HC order relates to petitions filed by MTNL and the DTS. The court fixed further hearing on other related reliefs in connection with the May 1999 Revenue Sharing Regulation sought by a non-Governmental organisation, Telecom Watchdog.

"TRAI cannot lay down the terms and conditions to service providers on introduction of telecom service, installation of equipment, technology and regulate in respect of the telecom industry," the bench ruled. It said that the regulator's powers in this regard were only "recommendatory" and the Government was not bound to abide by the proposals.