WLL-M wins case on roaming

Shailendra Bhatnagar

Reuters

NEW DELHI: India's top telecoms court on Saturday rejected a petition filed by private cellular firms seeking to restrain rival limited mobility services providers from using a technology that could allow roaming.

The split decision favoring basic operators, who offer the less expensive mobility services, has a huge bearing on the fortunes of the money-losing private cellular sector as it could now face competition even in its lucrative roaming segment.

"The TDSAT (Telecom Disputes Settlement and Appellate Tribunal) has by a majority of 2:1 dismissed the challenge filed by the cellular operators," Ramji Srinivasan, a lawyer representing the basic telephone operators, told reporters.

Private cellular firms had appealed to the TDSAT to stop basic operators from using mobile switching centers (MSC) in their networks.

India's nascent mobile sector, billed as one of the world's fastest growing markets, has more than 20 million users and is expected to have more than 100 million by 2008 as a low penetration rate and rockbottom tariffs fuel growth.

Firms such as Bharti Tele-Ventures Ltd have invested more than $5.0 billion in setting up a nationwide cellular presence.

These companies offer seamless roaming services, which they see as a growing business as the sector has some of the world's cheapest call rates.

The GSM sector is deep in the red and possible competition in this segment would only increase losses.

Fixed-line telecoms companies like Reliance Infocomm Ltd and Tata Teleservices Ltd, were allowed by the government in 2001 to provide mobile services within city limits.

A spokesman for Reliance Infocomm said the judgment would allow it to offer its services unhindered.

"A mobile switching center is at the heart of any telecom network and now we don't envisage any changes to be made in our networks as per the majority judgment," A Shanker, vice president at Reliance Infocomm, told Reuters.

Lawyers representing private cellular firms said it was too early to say whether the sector would approach the Supreme Court.

"We haven't read the full judgment as yet," Manjul Bajpai said.

The TDSAT settles legal disputes in the sector and its decisions can only be challenged in the Supreme Court.

© Reuters