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MTNL can do mobile business, says TRAI

Earlier the Cellular Operators Association of India had declared its intent to approach the TRAI following the announcement by MTNL to become the third operator of cellular services in the two metros.

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The COAI has already appealed against the MTNL decision to provide cellular services.

Prima facie, TRAI Chairman Justice S S Sodhi said, "It is permitted under the tender conditions." The COAI has also appealed to the TRAI opposing MTNL's move to become third operator.

The association has pointed out that according to Clause 13(1) of the license agreement for cellular services in the metros, "the license is issued on non-exclusive basis. The authority reserves the right to operate services within the same geographical area.''

Pointing out that the word 'authority' means the director general of telecommunications or any other officer empowered by him to perform all or any of the functions of the authority, the COAI has said that while under this provision DoT can enter as the third operator, this right does not automatically extend to MTNL, which is a separate corporation.

In a letter to DoT, TRAI has asked the department to furnish information about the terms and conditions on which MTNL is being allowed to operate cellular services.

"We have to examine terms and conditions and ensure a level playing field,'' said Justice Sodhi.

The cellular operators in the two metropolitan cities are up in arms since they have to undertake an extra burden of license fee from September 1998. They have to pay Rs 6,023 per subscriber per annum to the DoT. What the operators say is that MTNL will commence its operations from the third quarter of 1998 when they will have an upper hand over the cellular operators who will be handicapped by the huge license fee.

The operators point out that MTNL will take a sizeable market share, effecting the growth plans of the metro operators.

Earlier: Cellular operators want a stay on MTNL's mobile venture

- Compiled from the Indian media

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