Telecom bodies challege TRAI over VAS guidelines

GSM and CDMA Telecom operators along with their associations approached the sectoral tribunal TDSAT against the regulations of TRAI which laid down the procedures for providing Value-Added-Services (VAS) to their customers.

TRAI, while issuing guidelines on July 4, 2011 had said that telecom operators would have to take confirmation from their customers through SMS or e-mail or Fax or in writing within 24 hours of activation of the VAS.

It had further said that the operators could charge only after confirmation is received from their customer and if not it shall be discontinued.

Further, every service provider shall, at least three days before the due date of renewal of a subscribed value added service, inform the consumer about it through SMS.

Opposing the TRAI's directive, GSM lobby group Cellular Operators Association of India (COAI) and CDMA's Association of Unified Telecom Service Providers of India (AUSPI) said his regulation was unjust and unfair to them.

According to them, TRAI directive on VAS was "unreasonable, unwarranted and without application of mind...".

However, during the proceedings, the TDSAT bench headed by its Chairman Justice S B Sinha said that it would first go into the application filed by the GSM and CDMA lobby groups on the issue of condonation of delay.

TDSAT said that it would first settle the limitation issue made against TRAI's order as it has been filed 412 days after issuance of the direction and only then it will proceed on the main issue.

The tribunal issued notice to TRAI over the lobby group's application filed for condonation of delay and asked it to reply within a week. It also asked the lobby group and their operators to file rejoinder over TRAI's reply within three days.

The matter would now come on October 3 for hearing.

In its petition AUSPI has said that TRAI's directions are "encroaching and infringing" its right to carry on business and trade and it is against the innovative and consumer friendly ideas.

According to operators, these directions are beyond the quality of service norms and licence condition and it is "actually in conflict in with the statutory duty and functions of TRAI".

In its prayers, the operators has requested the tribunal to strike down TRAI regulation along with the letter written by the latter on it.

They also requested TDSAT to "restrain the respondent (TRAI) from taking any coercive action" till the pendency of the suit before it.

In AUSPI's petition, Reliance Communications, Reliance Telecom and Tata Teleservices are also parties.

As far as petition of COAI is concerned, Bharti Airtel, Vodafone, Idea Cellular and Aircel are also parties.