The Supreme Court has said that Bharat Sanchar Nigam Limited (BSNL)?s demand of over Rs 98.9 million from Reliance Communication (RCOM) for illegal routing of calls was an estimation of the loss sustained by the incumbent. The court set aside the Telecom Disputes Settlement & Appellate Tribunal (TDSAT) order and asked the tribunal to decide the matter accordingly. The tribunal had held that BSNL?S demand was punishable by nature, a ruling that was challenged by the incumbent in the apex court.
Allowing the appeal, a three judge bench headed by Chief Justice Kapadia said that under the interconnect agreement the UASL is obliged to maintain the integrity of its exchange/POI. Also, it is important to note that each service provider including BSNL is a market player/ stakeholder and so, each UASL is entitled to a level playing field.
He added that the nature of the call, be it local or national or international, as indicated by the corresponding Calling Line Identification is the basis for the levy of IUC (including ADC). If by wrong routing of calls or by masking, the cost of providing services is reduced, the concerned operator gets an undue advantage not only in the Indian market over other competing operators but also in the international market.
According to the apex court, the illegal routing of calls, results in payment of IUC at a lower rate. It leads to reduced cost for the defaulting UASL which provides not only increase in its profit but also gives it an advantage in international market vis-a-vis other competitors because the defaulting UASL can easily price its product in the international market at a lower rate and in that sense loss is caused to BSNL.
Responding to the Supreme Court?s ruling, an RCOM spokesperson said, ?The Honourable Supreme Court has held that there is no penalty under the interconnect agreement, and only a pre-estimate of reasonable compensation to BSNL. The Supreme Court has remanded the matter to TDSAT to decide the matter de novo.”
