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MTNL's cellular entry stalled till February 11
FE NEWS SERVICE
NEW DELHI, January 13: Mahanagar Telephone Nigam Ltd (MTNL) has been directed to withold its cellular entry plans for at least another month with the Telecom Regulatory Authority of India (TRAI) rejecting its plea for removinmg interim stay on cellular plans of the company on Tuesday. The next hearing of the case has been scheduled for February 11, 1998. TRAI had earlier, on January 6, directed MTNL to maintain a "status quo" till further orders on launching of their cellular service in Delhi and Mumbai.Appeal for a vacation of the stay was made as MTNL had recently floated a global depository receipts (GDR) issue and the stay ordered by TRAI affected its share prices. TRAI chairman Justice SS Sodhi said if the regulatory authority vacated the stay and allowed MTNL to go ahead, public money would be spent on the project which would then become irreversible on moral grounds. Justice Sodhi also observed that the crux of the issue was whether it was mandatory or discretionary for the Department of
Telecommunications (DoT) to have a recommendation from the TRAI about timing and introduction of a new service provider, which is MTNL in this case. This is the preliminary issue which will be heard on February 11, 1998. The TRAI Act 1997 (section 11) gives the telecom regulator the power to recommend the need and timing of a new service provider as well as recommend terms and conditions of licence of the new service provider.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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