HC reserves order on TRAI scheme

NEW DELHI, JANUARY 13: The Delhi High Court on Thursday reserved its judgement on the controversial calling party pays (cpp) scheme under ...

NEW DELHI, JANUARY 13: The Delhi High Court on Thursday reserved its judgement on the controversial calling party pays (cpp) scheme under which the Telecom Regulatory Authority of India (TRAI) had proposed to make incoming calls free on cellular phones.

A division bench comprising Chief Justice S N Variava and Justice S K Mahajan, which had in October last year stayed the implementation of the the scheme, asked the TRAI to calculate the quantum of benefits enjoyed by cellular operators after the revenue-sharing package was introduced in August 1999.

The proposed scheme, which was to come into effect from November, was challenged by the Mahanagar Telephone Nigam Ltd (MTNL) and an NGO, Telecom Watchdog, saying TRAI had no power to regulate any scheme on its own as its role was only "recommendatory" in nature.

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The direction to the TRAI came after MTNL counsel C S Vaidyanathan alleged that the operators were enjoying double benefits following introduction of the revenue-sharing package and the same were not being passed on to the consumer.

Vaidyanathan said though the monthly rental charge for cellphone consumers had been reduced from Rs 500 to Rs 150 after the switch-over, the operators had not passed on this benefits to them.

However, TRAI counsel T R Andhyarujina contended that the regulator had the power to issue direction including fixing tariff and inter-connection charges or else "it will be reduced to a nought".