The Hindu Business Line : MTNL told to lower infrastructure charges

New Delhi March 19 Telecom Dispute Settlement Appellate Tribunal (TDSAT) on Monday directed state owned Mahanagar Telephone Nigam Ltd to reduce infrastructure charges collected from private operators and asked sector regulator Telecom Regulatory Authority of India to frame guidelines for fixation of such charges. This follows appeals by private operators including Reliance Communication. Infrastructure charges are paid by private telecom firms to locate equipments such as terminals and antennas in MTNL's premises in order to connect with each other's network.

Mr Justice Arun Kumar, held that MTNL had increased these charges exorbitantly by about five-fold within three years in an arbitrary and unreasonable manner. Reliance Infocomm and BPL Mobile had dragged MTNL to TDSAT for charges paid in Delhi and Mumbai respectively. TDSAT observed that MTNL was currently charging Rs 21.85 lakh per year for one square metre space in its office compared to Rs 3.77 lakh in 2000. "We consider it apt in these circumstances to quash the demand notices issued by MTNL to petitioner and hold that the charges fixed in the year 2000 should prevail subject to 10 per cent annual escalation," the tribunal said.

"In order to ensure that there is a semblance of fairness and reasonability and respondent (MTNL) is not tempted to adopt arbitrary approach in this regard as it has done in the matter before us, we request TRAI to lay down guidelines at the earliest," TDSAT said.

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