In a major blow to Tata Tele Services, telecom tribunal TDSAT on Friday said the company's fixed wireless service Walky would be treated as WLL (mobile) service and ordered it to pay a fee called access deficit charge to state-run BSNL.

In its order, TDSAT said Walky should not be regarded as anything else but WLL (M).

"As per licensing conditions, fixed wireless service has to be provided within the subscriber premises, wherever it is not, it has to be treated as WLL(M)," the tribunal said.

With its Walky service having been classified as WLL(M), Tata Teleservices [Get Quote] would now have to pay ADC, a fee to compensate PSU telecom companies for services offered by them in unremunerative markets.

The tribunal also dismissed Tatas' charges that BSNL's actions were unilateral and arbitrary.