TDSAT directs MTNL to reduce infrastructure charges

20 Mar 2007

New Delhi: Telecom tribunal TDSAT has directed state-run MTNL to reduce infrastructure charges collected from private operators and asked sector regulator TRAI to frame guidelines for fixation of such charges.

A TDSAT bench headed by Justice Arun kumar said MTNL had increased these charges exorbitantly in an "arbitrary and unreasonable manner".

The Telecom Disputes Settlement and Appellate Tribunal also held that infrastructure charges should not be increased more than 10 pc annually and directed Telecom Regulatory Authority of India to frame guidelines for these charges.

Infrastructure charges are paid by private telecom firms to MTNL and BSNL as rental and maintenance fees to station their link equipments such as terminals and antennas in the premises of the state-owned companies to get connected in their NLD (domestic) and ILD (international) networks.

The tribunal also directed MTNL to return the extra amount charged from Reliance Infocom within 30 days.