(The Hindu Business Line 1st May 2008) In a blow to Tata Teleservices and Reliance Communications, the Supreme Court has asked the two companies to pay up Rs 700 crore to Bharat Sanchar Nigam Ltd as access deficit charges on limited mobile phones. The two companies had argued that since limited mobile phones were being provided under the fixed line telephone licence, they were not liable to pay the charges to BSNL. However, the apex court has upheld the order given by the telecom tribunal in 2005 that limited mobile phones could not be treated as fixed line phones and is a wireless mobile service and, therefore, the companies will have to pay the charges. Though ADC has been abolished now, in 2005 the Government had said that fixed line service providers need not pay the charges. Following the court’s order, the two companies have to pay the outstanding charges to BSNL for the past few years. ADC was a levy imposed on private operators for funding BSNL’s rural telephone schemes. A benc...
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