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BSNL sends disconnection notice to Tata Tele — SC hearing today on appeal against tribunal order on ADC

Thomas K. Thomas

New Delhi , Oct. 2

BHARAT Sanchar Nigam Ltd (BSNL) has directed all its circle units to issue disconnection notice to Tata Teleservices for non-payment of access deficit charges (ADC) while offering fixed wireless telephone services (Walky).

In a notice sent to all the circle heads across the country on September 29, state-owned BSNL said the Tata company be given 30 days to pay up the dues after which the points of interconnection will be disconnected without further notice.

The Tatas have, meanwhile, approached the Supreme Court challenging the order by the Telecom Dispute Settlement Appellate Tribunal allowing BSNL to charge ADC on Walky services. The case is slated to come for hearing on October 3.

The Rs 35,000-crore BSNL has told the circle heads to issue the recovery notices before the Supreme Court takes up the matter because at the moment "the case was in favour of the PSU."

BSNL has said field units would be held responsible for any loss arising out of any delay in acting quickly on the issue. The company had earlier sent a directive to its circle heads that the recovery process may be expedited.

In the event of a disconnection, Tata Tele subscribers will not be able to call a BSNL user and vice versa. Last year, BSNL had given a similar disconnection order to Reliance Infocomm for allegedly not paying ADC on international long distance calls.

Tata Teleservices, in its appeal, had questioned the unilateral decisions of BSNL, which were "anti-competitive" and severely hurting the future growth of fixed line services in the country.

BSNL is estimated to get around Rs 350 crore from the Tatas. "The notice issued by BSNL is in violation of the code of conduct to be observed in a sub-judice mater, and is not only in breach of spirit but also reflects the lack of respect to the Indian judicial system," said a Tata source.

If the Supreme Court decides to take up the matter, it could also have far reaching implications on the ongoing tussle over ADC matters between the licensor — the Department of Telecommunications, and the regulator — the Telecom Regulatory Authority of India.

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