The Hindu Business Line : BSNL wants immediate payment from MTNL

The spat between BSNL and MTNL over payment of dues has aggravated, with the former sending a fresh missive demanding immediate payment of access deficit charges on limited mobile services `Garuda' since November 2004.

MTNL has not been paying the ADC charges for limited mobile phones on the grounds that it was offering the services under the fixed telephony licence in areas where it was technically not feasible to lay copper cables.

The company also told BSNL that it should await the decision of the Supreme Court in a case filed by Tata Teleservices against the order by the telecom dispute tribunal asking CDMA operators to pay ADC on limited mobile services.

In its letter to MTNL sent on May 30, BSNL said that though the issue was with the Supreme Court, there was no stay on the TDSAT ruling.

"MTNL was neither a party in any of the sub judice cases nor has it paid any pending interconnect usage charges including ADC payments to BSNL regarding its fixed wireless limited mobile services. Therefore, MTNL cannot be treated at par with Tata Teleservices and Reliance, who have already made interim payment to BSNL as per the order of the Supreme Court," BSNL said in its letter to the MTNL Chairman.

BSNL has asked MTNL to pay up the deficit charges since other operators have made interim payments for the limited mobile service, despite the issue being sub judice.

It had made ADC demands from Tata Teleservices and Reliance Communications on the grounds that limited mobile service was similar to a full-fledged cellular service.

Though the BSNL stand was upheld by the TDSAT, the two private operators filed an appeal in the Supreme Court.

The two public sector undertakings have been at loggerheads over payment of dues for some time now.

BSNL had demanded nearly Rs 1,000 crore from MTNL for carrying its long-distance calls and other charges.

Though MTNL paid Rs 312 crore, it severed its ties with BSNL and entered into a fresh agreement with VSNL for carrying its STD calls between Delhi and Mumbai.

MTNL is now looking at similar tie-ups with private operators for STD services to other parts of the country, which could result in revenue losses to BSNL.

The tussle comes even as the Government is exploring at the option of merging the two entities.

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