BSNL’s fusion formula galls pvt operators

Neeraja Kumar in New Delhi

For fusion freaks who trip out on a mix of the old and the new, Bharat Sanchar Nigam Limited (BSNL) could offer some tips. Private telecom operators however are a more staid species and are cribbing about the confusion over the fusion.

BSNL in all its wisdom has chosen to mix portions of old and new interconnection regulations by reverting to pre-1999 rates of interconnection, while opting to stick with the new per-unit call charges.

The previous Telecom Regulatory Authority of India (which was disbanded in January 2000 following a High Court ruling) had revised interconnection charges to be paid by private basic and cellular operators to BSNL to 48 paisa from 50 paisa for STD calls and to 66 paisa from 70 paisa for ISD calls.

However, the new Trai which was formed within a week of the High Court ruling, did not endorse its predecessor’s Telecommunication Interconnection (Charges and Revenue Sharing) Regulation of May 1999.

BSNL, last month, woke up to this apparent loophole and decided to revert to the old dispensation for higher interconnection charges while keeping the unit call charge at Rs 1.20 instead of the previous Rs 1.40 (based on the new local call pulse or duration of 3 minutes against the earlier 5 minutes).

Basic operators are opposed to the current revision on the grounds that BSNL is trying to implement only the inter-connect part of the pre-99 regime, in a bid to increase its revenue share in STD and ISD calls originating from the networks of the private operators.

While Trai officials refused to comment on the issue or the course of action they plan to adopt in face of blatant defiance of its tariff order by BSNL, the latter feels it is legally well within its rights to charge the old interconnection rates saying that the overriding effect of the Interconnection Regulation 1999 with reference to the specific provisions in the licence conditions was no more applicable.

However, since the interconnection issue is already sub-judice, BSNL says it won’t cut interconnection with the private operators as it had threatened earlier.

Private basic operators had earlier obtained a stay in the Telecom Dispute Settlement Appellate Tribunal (TDSAT) over BSNL’s earlier move to unilaterally change the interconnection charges from June 22, 2001 onwards. The next hearing in this case is slated for the second week of December.