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Trai's authority challenged by DTS and MTNL - Views on News from Equitymaster
 
 
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  • Nov 22, 1999

    Trai's authority challenged by DTS and MTNL

    The Department of Telecommunication Services (DTS) and Mahanagar Telephone Nigam Limited (MTNL) have questioned the authority of the Telecom Regulatory Authority (Trai) to fix the revenue share between the cellular and basic operators in a calling party pays (CPP) regime. This has been reported by a leading financial daily.

    This move by DTS and MTNL is likely to hasten the efforts of the government to install Trai as the supreme telecom regulatory authority in India. The move has been in the offing for some time as the two public sector service providers, MTNL and DTS, have consistently challenged the authority of the Trai to issue orders on various issues.

    MTNL and DTS have challenged that the revenue share should be decided mutually between the various parties with the Trai stepping in only in the case of a dispute. Having been dragged to court, the reform measures planned by the Trai are likely to be dragged further.

    In view of the impending reforms in the telecom sector, it is necessary that the government immediately initiate measures to stall the process of putting the Trai's authority in question. Any delay in this could cost India a large amount of foreign investment and a further delay in the introduction of customer friendly measures.

     

     

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