Calling the move a ``blatant predatory tactic by a dominant and still monopolistic telephone service provider'', ABTO has already shot off a strongly-worded letter to the Telecom Commission chairman Anil Kumar in protest. It case the issue is not sorted out amicably, there are chances that the service provider could even approach the Monopolies and Restrictive Trade Practices Commission (MRTPC) against DoT's move.

By disallowing the PCO operators from taking a Bharti connection, DoT was violating private operators' licenceconditions whereby the scope of service clause mentions that PCOs will be allowed to be set up by private operators, ABTO has claimed.

The basic service providers fear that if DoT succeeds in `arm-twisting' one category of subscribers, they might do the same with other high-paying subscribers too in the future. At the genesis of the face-off is a notice signed by the general manager of Indore telecom which was published in Indore edition of Dainik Bhaskar on October 7. It stated that PCOs being provided by more than one agency from the same shop was in violation of department rules and would invite punitive action.

``By virtue of being the monopoly telecom provider in the state, DoT definitely wields a lot of market muscle,'' ABTO has noted in its letter.

``Such behaviour amounts to subverting the very concept of reforms and deregulation in telecommunications which aims at giving subscribers more choice and a chance to avail of better services at lower prices. Issuing of threats and relying on power ofmarket share to deprive customers of choice is neither desirable nor acceptable,'' the letter further stated.

``DoT should instead focus on sprucing up its marketing and customer relations mechanisms, deploy new technologies and improve its services for a fair competition in the market rather than seek to stifle competition,'' felt ABTO.

Bharti Telenet, a Bharti Enterprises and Telecom Italia of Italy which started its services at Indore, Dewas and Pithampur in June, has been offering reduced commercial rates, giving between 5 to 7 per cent discount on commercial calls. The company sources claim that Indore telecom office too had asked for permission to follow suit and reduce rates which was not acceded to by DoT.

On Friday, Bharti had inaugurated its own `backbone network' to carry long distance calls, along with the launch of AirTel Telephone Service in Bhopal and Mandideep. It has been hoping to get more connections and a better revenue through long-distance calls carried on its network.

PCOs are avery lucrative market for Bharti. It presently has close to 5,000 connections in Indore, out of which between 5 to 10 per cent are estimated to be given to PCOs. Meanwhile, according to sources, the company has not yet made any firm commitment to DoT for the payment of second year's licence fee as reported in the media.

``The ball is still in the court of the Telecom Commission and it has promised to look into all aspects of the problems enumerated by us.

Therefore, why would they want to jump the gun?'' the source said. ``It was not as if the bank guarantees were going to lapse and the DoT in its letters had not threatened of punitive action,'' he added. As against a planned investment of Rs 4,000 crore in the entire Madhya Pradesh over the next 15 years, Bharti Telenet has invested Rs 280 crore till now. If all goes well, the company is expected to launch AirTel services in Raipur, Gwalior and Jabalpur next.