Financial Daily from THE HINDU group of publications
Tuesday, Feb 07, 2006
Financial Daily from THE HINDU group of publications Tuesday, Feb 07, 2006 |
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Courts/Legal Issues Info-Tech - Telecommunications Fixed wireless telephony — SC asks Reliance Info to pay ADC Our Bureau
New Delhi , Feb. 6 IN ANOTHER blow to Reliance Infocomm, the Supreme Court has asked the company to pay access deficit charge (ADC) to state-owned Bharat Sanchar Nigam Ltd for calls from its fixed wireless telephone (FWT) users. The apex court said that fixed wireless telephone was equivalent to mobile service and therefore 24 lakh Reliance Infocomm FWT subscribers will now have to pay ADC. The net outgo for the company as a result of the decision could be over Rs 160 crore. Earlier, the Telecom Dispute Settlement Appellate Tribunal (TDSAT) had given a similar ruling that fixed wireless terminal (FWT) phone was equivalent to a limited mobile service and not a fixed line telephone. Reliance Infocomm had filed its petition with TDSAT challenging BSNL's demand for ADC payments. However, the telecom tribunal ruled that the Reliance service was similar to the `Walky' offered by Tata Teleservices which was also asked by the tribunal to pay up the ADC to BSNL. The Supreme Court order could also mean that Tata Teleservices' Walky subscribers may have to start paying ADC. In September 2005, responding to Tata Teleservices petition against BSNL, the tribunal rejected the challenge and said that `Walky' was actually a WLL (M) service, with limited mobility, and not a fixed telephone service, contrary to the licence granted to the company.
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