Vodafone
India has challenged the decision of telecom regulator Trai to lower
termination charges for fixed-line and mobile calls in Supreme Court,
seeking a stay on the move that will see consumer tariffs coming down.
The country's second-biggest telecom operator argued that Trai's new regulation on lowering Inter-Connection Usage Charges (IUC) has been taken in "undue haste", which is uncalled for, and at a time when some of the issues pertaining to the matter are already pending before the apex court.
The application, filed in the name of Vodafone Essar Gujarat Ltd, said, the decision will lead to a "grave and irreparable prejudice" to its business interests.
In its application, Vodafone said Trai should be "restrained from acting upon and giving effect" to the decision. "The impugned decision is in violation and contravention... and should be stayed till the appeal is pending."
The matter will come up for hearing on Friday.
On February 23, Trai had announced a reduction in charges that companies pay to terminate calls on competing networks. The measure, which has to be implemented from March 1, will mainly benefit companies giving fixed-line services as they will be able to offer major benefits to consumers such as increased free monthly calls and minutes.
Vodafone does not have a fixed-line business in India and could have been impacted by the decision in a big way, according to industry analysts. Major beneficiaries of lower tariffs in the fixed-line business are state-owned BSNL and MTNL and private companies such as Bharti Airtel, which command a big share in the category.
Trai had reduced the termination charges from fixed-line phones from 20 paise per minute to zero and from mobile phones to 14 paise per minute (a 30% reduction).
When contacted, a spokesperson for Vodafone India declined to comment on the matter, saying it is sub-judice.
Sources said the regulator will challenge the appeal in the court, arguing that it has the authority to pass the order.
The country's second-biggest telecom operator argued that Trai's new regulation on lowering Inter-Connection Usage Charges (IUC) has been taken in "undue haste", which is uncalled for, and at a time when some of the issues pertaining to the matter are already pending before the apex court.
The application, filed in the name of Vodafone Essar Gujarat Ltd, said, the decision will lead to a "grave and irreparable prejudice" to its business interests.
In its application, Vodafone said Trai should be "restrained from acting upon and giving effect" to the decision. "The impugned decision is in violation and contravention... and should be stayed till the appeal is pending."
The matter will come up for hearing on Friday.
On February 23, Trai had announced a reduction in charges that companies pay to terminate calls on competing networks. The measure, which has to be implemented from March 1, will mainly benefit companies giving fixed-line services as they will be able to offer major benefits to consumers such as increased free monthly calls and minutes.
Vodafone does not have a fixed-line business in India and could have been impacted by the decision in a big way, according to industry analysts. Major beneficiaries of lower tariffs in the fixed-line business are state-owned BSNL and MTNL and private companies such as Bharti Airtel, which command a big share in the category.
Trai had reduced the termination charges from fixed-line phones from 20 paise per minute to zero and from mobile phones to 14 paise per minute (a 30% reduction).
When contacted, a spokesperson for Vodafone India declined to comment on the matter, saying it is sub-judice.
Sources said the regulator will challenge the appeal in the court, arguing that it has the authority to pass the order.
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