Financial Daily from THE HINDU group of publications Thursday, Dec 02, 2004 |
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Corporate Disputes Info-Tech - Telecommunications `Illegal routing' of long distance calls Reliance, BSNL to settle dispute out of court Thomas K. Thomas
New Delhi , Dec. 1 IN a bid to diffuse the ongoing controversy, Reliance Infocomm and Bharat Sanchar Nigam Ltd (BSNL) have decided to sit across the table and try to negotiate an out-of-court settlement on the alleged illegal routing of long distance calls. The two companies have begun discussions to arrive at a mutually agreeable solution to the six-month-old dispute. The move comes even as the case is scheduled for hearing on December 3. While both sides confirmed that negotiations were going on, the formula being worked out for arriving at an amicable solution is not clear at this stage. According to insider sources, Reliance Infocomm appears to be ready to pay a part of the amount claimed by BSNL. The dispute between Reliance and BSNL began a few months ago when the State-owned company complained to the Department of Telecom (DoT) that the private operator was routing international long distance (ILD) calls like a local call to avoid payment of access deficit charges (ADC). The deficit charge on an ILD call is over Rs 4 a minute, which makes it attractive for operators to route the calls through the grey channel. Reliance Infocomm, on the other hand, is said to be drafting its reply to the DoT notice imposing a Rs 150-crore penalty for licence violations. The company is set to contest the allegations made by DoT on grounds that the calls were being routed through the `Home Country Direct' services. `Access deficit charges to be cut': Meanwhile, the Telecom Regulatory Authority of India (TRAI) on Wednesday reiterated that the ADC amount would be reduced in the next few weeks. The TRAI Chairman, Mr Pradip Baijal, said that the new regime would be announced in the next two weeks, which will bring down the tariffs even further.
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