The TRAI had, in its earlier directives, instructed the BSNL to pass on the benefits of concessional tariffs to all subscribers, including those of private basic and cellular operators. When the BSNL did not comply, the TRAI passed prosecution orders.

The BSNL, on its part, contests that the entire exercise is anti-competitive. A senior BSNL offical said, "We have devised a special package for our subscribers for which they will be paying a higher rentals. Why should other operators be allowed to ride our network and pass off their long-distance calls as local calls?" He added: "If we are forced to pass off these benefits to private operators also, then we might have to consider withdrawing the package altogether. However, that will mean that the subscriber suffers eventually."

Private operators, however, argue that it is unfair that the benefits of concessional tariffs are not available to them, since there is no competitor they can go to as far as interconnection is concerned.