BSNL had challenged Trais three communications which had allowed HFCL, a basic service provider in Punjab, to hand over calls to BSNL at a intermediate point (known as far-end hand-over) thereby making BSNL lose revenue on carriage charges.
According to BSNL, this was resulting in loss of carriage charges to it, as these charges are levied upon the basis of distance. HFCL was carrying the calls till maximum distance possible on its own network and handing over the calls to BSNL only for termination so that HFCL had to pay minimum or no carriage charges to BSNL.
Thus TDSAT quashed and set aside the impugned three communicatons of Trai dated December 4th, 17th and 22nd, last year and also held that HFCL was not entitled to hand over its traffic as they were seeking to.
Trai had even issued show cause notice to BSNL to explain why an action should not be taken against them for violating regulators directions. Even the CMD of BSNL was asked to appear before the Trai through its communication.