Split TDSAT view takes 3G roaming fight to SC

A split verdict by the telecom tribunal on Tuesday on intra-circle 3G roaming pacts between Bharti Airtel, Vodafone and Idea Cellular will ensure the three operators continue to provide services in circles where they do not have 3G spectrum.

A split verdict by the telecom tribunal on Tuesday on intra-circle 3G roaming pacts between Bharti Airtel, Vodafone and Idea Cellular will ensure the three operators continue to provide services in circles where they do not have 3G spectrum. The matter is now set to go to the Supreme Court for a final resolution.

Telecom Disputes Settlement and Appellate Tribunal (TDSAT) chairman justice SB Sinha ruled in favour of the operators saying services are not spectrum-specific and roaming services are not linked to the band in which operators hold spectrum. He also said there was no difference between inter- and intra-circle roaming and the licence allows for both. Justice Sinha castigated the department of telecommunications (DoT) for not following the principles of natural justice in asking operators to stop such services by calling them illegal. His order has asked DoT to start the whole process afresh.

However, TDSAT member PK Rastogi dismissed the operators? appeal, stating operators having 2G spectrum cannot provide 3G services. Curiously, Rastogi brushed aside the notice inviting applications (NIA) document which permitted intra-circle roaming, stating it is not binding on DoT and does not confer any rights to the operators. He has also differed with justice Sinha on the principles of natural justice, stating operators were all along aware of DoT?s stand.

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The tribunal, which is a three-member body, currently has only two members with the third one having retired and no substitute in place yet. Though TDSAT has issued split verdicts in the past, this is perhaps the first time there is no majority view because of the absence of a member.

The verdict comes after almost six months and is sure to carry on for a few more months before a final order by a higher court resolves the contentious issue.

The problem began last year with DoT taking the stand that 3G intra-circle roaming pacts are illegal, which was contested by the operators who had entered into such agreements to provide 3G services even in the areas where they did not have spectrum. While the operators maintain that the NIA document and subsequent clarifications by the government allowed for such pacts, DoT maintains that such arrangements are illegal and leads to a loss of revenue for the government.

The need for such agreements ? called intra-circle roaming pacts ? arose as no operator won 3G spectrum in all 22 circles. Bharti Airtel, the country?s largest mobile operator, provides services in 13 circles, which is the highest among the private operators. Intra-circle roaming means operators get into roaming pacts within a circle and is distinct from inter-circle roaming pacts, which gets activated when a subscriber travels.

Last December, DoT had issued notices to operators asking them to stop intra-circle roaming for 3G services. Subsequently, operators filed a plea in TDSAT challenging the order. They also obtained a stay on the order from the Delhi High Court.

Sector regulator Telecom Regulatory Authority of India (Trai) had also agreed with DoT that operators were not allowed to enter into such pacts. Interestingly, state-owned BSNL, which has 3G spectrum in 20 circles, was the first to complain against the intra-circle roaming pacts, stating it was losing revenue on this count.

India?s 3G market is currently a nascent once with just around 12 million users.

WIRELESS WOES

* DoT?s notice inviting appli-cations had allowed intra-circle roaming pacts for 3G

* Telcos formed intra-circle roaming pacts since none of them won 3G pan-India

* BSNL, which holds 3G spectrum for 20 circles, says such pacts affect its revenues

* The telecom department termed the pacts illegal, prompting telcos to move court

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First published on: 04-07-2012 at 00:25 IST
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