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Cellular players to seek Trai clarification on refund issue 

Neeraja Kumar  
New Delhi : The cellular operators plan to seek a clarification from the Telecom Regulatory Authority of India (Trai) on its recent directive to refund money to cellular subscribers, under new tariffs applicable from August 1999 onwards. The cellular companies who are questioning the very rationale behind the directive, plan to approach the Trai on Monday. "The High Court ruling was only for standard tariffs. The pre-paid, which come under alternate tariff packages, are anyway not governed by regulation and were not a part of the High Court ruling," according to Mr TV Ramachandran, director general, Cellular Operators Association of India (COAI). "On Monday, we will go the Trai and tell them that this is incorrect. The question is not the quantum, but the principle," he added.

Meanwhile, cellular operators say that they are yet to reach at the exact implication of the directive or the money to be refunded to the subscribers, even as they insist that media reports on the actual loss-ranging from Rs 2000 crore to Rs 400 crore-are incorrect and far-fetched. "We are currently working on the calculations and should be able to come up with figures by Wednesday. There are a lot of hidden calculations also involved. For instance, will the Government refund to us, the licence fee, which it took in the form of revenue share, on the basis of the revenue collected from the subscribers," said a senior official of a Delhi-cellular service provider.

"There is also the practical issues of pre-paid customers. Pre-paid is not part of the regulation," he added.Meanwhile, Mr Umang Das, executive director-corporate affairs, Spice Communications also says that the loss will not be as much as reported in the media: "Specially for circles, the monthly rentals and tariffs were anyway far below the level of Rs 422 per month and Rs 4.65 per minute, fixed by the TRAI.

If at all, there will be an impact, it will be from the August 1999 to November 1999 period." Earlier, on Thursday, January 25, the TRAI has directed the cellular operators to refund the amount due to the subscribers for fixed and variable charges - rentals and air time charges paid by the standard tariff subscribers and air-time charge for other subscribers.

According to the TRAI, the initial refund from August 1999 to October 1999, for standard tariff subscribers works out to Rs 178.00 per month on account of rentals and Rs 1.35 per minute on account of air-time charges in metros and circles. From November 1999 to January 2000, the monthly rental refund works out to Rs 53 per month for metro subscribers and Rs 78 per month in circles. The airtime usage refund remains Rs 1.35 per minute in both metros and circles for this period. For pre-paid tariff subscribers, these refunds vary from Rs 3.61 per minute to Rs 0.06 per minute.

DoT seeks liquidity damages from cellular operators
In a punitive action against the cellular operators, the Government is seeking liquidity damages from cellular companies, who are yet to fulfil their roll-out obligations. Confirmed Mr Shyamal Ghosh, secretary, DoT, that, "On Thursday, the DoT had sent letters to the cellular operators, who are yet to fulfil their roll-out obligations. Most of these are companies who operate cellular services in circles." Incidentally, this was the same day when the Government announced that it will allow basic operators to provide WLL mobility and the Trai directed the cellular operators to refund their subscribers.

Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.

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