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Cellcos seek compensation over 'WLL losses'

September 15, 2003 19:48 IST

Cellular operators on Monday asked the Telecom Regulatory Authority of India to consider a compensation to offset loss of 80 per cent of their businesses within a local area, which had been adversely affected with the introduction of WLL services.

"WLL services has had an adverse impact on cellular operators' business. Trai must consider a compensation to cellular operators for loss of 80 per cent of their business within SDCA (local area) for the tenure of their licence post 2001 when WLL were permitted," Cellular Operators Association of India said making a pitch before Trai, for compensation in lieu of WLL services.

As the deadline for submission of written comments on level playing field issues came to an end today, COAI also asked the regulator to consider appointment of an independent expert agency for advise on the quantum of entry fee as also appropriate compensation to cellular operators on account of introduction of WLL services.

The COAI pointed out that its response matter could not be taken as an endorsement to the decision of the government to permit basic operators to offer WLL services.

COAI said that in TDSAT order on WLL, the tribunal had upheld WLL on the basis that it was clearly distinct from cellular mobile services, including within SDCA offered by cellular operators.

"Furthermore, it was based on this differentiated product offering that the tribunal directed Department of Telecom or the regulator to initiate suitable action to correct imbalance in respect of select parameters that have been identified as possibly unfair to cellular mobile players," COAI said.

COAI said that entry fee to be paid by basic operators for WLL services be applied as a one time charge as "this was the principle enunciated in NTP 99 and was also the practice followed for entry by all telecom players."

"There is no rationale of justification to deviate from this principle and apply a different yardstick to WLL mobile players," they said.

Cellular operators demanded that besides determining the entry fee and other charges for WLL players, the regulator must ensure implementation of TDSAT verdict, which restricted WLL services within SDCA.

COAI also sought postponement of TRAI open house on level playing field which is scheduled for September 17, saying it gave hardly any time to operators to study the issues in the wake of responses of other players.


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