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TRAI still indecisive about MTNL's going cellular

The regulator is hearing a petition filed by Bharti Cellular Limited against the MTNL plan to go cellular.

T O D A Y

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The next hearing in the case has been scheduled for February 11. Earlier, on January 6, the TRAI had directed MTNL to "maintain status quo (regarding cellular services) as on date till further orders regarding launching of cellular service in Delhi and Bombay".

Additional Solicitor-General U N Bhat, representing MTNL, wanted TRAI Chairperson S S Sodhi to vacate its interim order of January 6.

Bhat contended that after its order, the MTNL share price had fallen and it would dip further if the order were not vacated.

Further, the additional solicitor general argued that the question of taking TRAI's permission before allowing MTN L - the state-owned domestic telecom carrier - to start cellular services did not arise because the state-owned telecom company was "not a new service provider".

MTNL has been allowed to offer cellular services (in 1985), he averred.

Bharti Cellular, which is representing other cellular operators in the country, had contended in its petition that under Clause 11 of the TRAI Act, 1997, that the permission of the regulator is required for entry of a new service provider.

The Act gives the telecom regulator the power to recommend the need and time of a new service provider as well as recommend terms and conditions of licence of the new service provider.

Sodhi felt "the crux of the issue is whether it is mandatory or discretionary for the telecom department to have a recommendation from the TRAI about timing and introduction of new service provider."

Together with TRAI Vice-Chairperson B K Zutshi, he asked Bhat whether it is the government's view that TRAI consent is not necessary before MTNL entered the cellular arena.

Bhat wants more time to discuss the issues with the Department of Telecommunications and MTNL before answering the question. This is the preliminary issue, which will be heard on February 11.

On DoT's argument that MTNL is not a new service provider, Sodhi said that this would be decided subsequently.

- Compiled from the Indian media

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