The dispute between Bharat Sanchar Nigam Limited (BSNL) and private players over non-payment of carriage charges has intensified considerably.

BSNL has cut off the point of interconnection between private mobile operators, and its fixed line and mobile subscribers in Punjab and Haryana. The PSU has alleged that private operators owe it Rs 1.65 billion as interconnect usage charges (IUC) and warned that non-compliance with this demand would lead to disconnection of links between the networks. IUC charges are paid by one operator to the other for using its network to complete calls and send SMSs. In Haryana, BSNL has claimed dues of Rs 27 million. This includes Rs 9.8 million from Vodafone Essar, Rs 8.1 million from Bharti Airtel and Rs 9.2 million from Idea Cellular.

BSNL has reportedly restored network connectivity with Reliance Communications, Tata Teleservices Limited and Sistema Shyam TeleServices Limited. However, connectivity with Idea Cellular, Bharti Airtel and Vodafone Essar continues to be affected. Private operators, represented by the Cellular Operators Association of India (COAI) and the Association of Unified Telecom Service Providers of India have contested BSNL’s demand.

According to the COAI, a private operator is expected to pay Re 0.35 per minute to terminate a call on BSNL’s fixed line network while the PSU is required to pay Re 0.20 per minute for a call generating from its fixed line network and terminating on the private operators’ network.

Commenting on the issue, Rajan Mathews, director general, COAI,said, “BSNL is seeking a higher termination charge of Re 0.40-Re 0.85 per minute from the private operators for termination of mobile calls to its fixed line network (as distance-based carriage). This is contrary to the Telecom Regulatory Authority of India’s (TRAI) regulation and the private operators are not liable to pay this.” The COAI had also asked BSNL to review and withdraw the notices, in the interest of consumers.

In this case, the argument depends on how the Interconnect Usage Charges (Regulation 2009) of TRAI is interpreted.

However, despite several discussions with BSNL, the issue has not been resolved. The matter is currently with the Telecom Disputes Settlement & Appellate Tribunal (TDSAT), which has already stated that operators need to pay intra-circle carriage charges at the same rate as they had been paying from July 2010 onwards. TDSAT further stated that pursuant to compliance of this directive, network connectivity should be restored by BSNL.

Hence, BSNL has restored connectivity with some operators in Haryana. The next hearing on the matter has been scheduled for the first week of November.

Meanwhile, the situation has impacted customers in Haryana and Punjab, who cannot connect with Bharti Airtel, Vodafone Essar and Idea Cellular users in the same circles. Similarly, the subscribers of these three operators cannot call BSNL’s customers.

Industry analysts say that there could be three possible solutions to this situation. First, both the private operators and BSNL could continue with their present stance, in which case the situation could be a long-drawn-out one. Alternatively, BSNL could soften its stand, given the pressure from industry bodies and the fact that it has already restored connectivity to a few operators. Or, the private operators could back down. But for now, it seems the stalemate is set to continue.