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BSNL urges Trai to review WiLL rentals

BS Economy Bureau

Bharat Sanchar Nigam Ltd has approached the Telecom Regulatory Authority of India, asking for a review of its decision to fix rentals for limited mobility services between Rs 450 and Rs 630.

The move once again brings BSNL in direct conflict with private basic operators who have welcomed the rentals fixed by the regulator. Sources in BSNL said the high rentals fixed by the regulator will compel it to roll back its business plans of putting up 600,00 WiLL-based limited mobility lines in the rural sector.

"The high rentals have killed our plans to roll out affordable services to the rural sector. We have requested Trai to take a relook at the rentals. We have asked Trai to remove the floor price," top sources said.

On the other hand, private basic operators have said Trai rentals are a step in the right direction in bringing tariffs on cost base. Basic operators said the high rentals would prevent BSNL from adopting predator-pricing, which would have been difficult for private operators to match.

"BSNL can afford to bring down the rentals to as low as Rs 200 which would have finished our businesses," said a spokesperson of the basic operator.

Sources in BSNL said that if Trai did not respond favourably then they would be left with no other choice but to approach the Telecom Dispute Settlement Appellate Tribunal.

Trai on Friday had issued orders whereby rentals for limited mobility were fixed between Rs 450 and Rs 550.

The regulator had also said that operators could charge up to Rs 10,000 for CDMA-based handsets used for limited mobility and charge an additional rental of Rs 80 per month for the handsets.

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