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Airtel, Vodafone, Idea fined for denial of interconnection to Jio
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SME Times News Bureau | 22 Oct, 2016
The Indian telecom regulator on Friday slapped heavy penalties on three
telecom players -- Bharti Airtel, Vodafone India and Idea Cellular --
for not providing sufficient points of interconnections (PoI) to
Reliance Jio.
It also said the action of the three operators showed "ulterior motive to stifle competition".
In
three similar letters to the three players, the watchdog -- Telecom
Regulatory Authority of India (TRAI) -- said it has recommended a penal
action of Rs 50 crore per licence service area (LSA) (except Jammu &
Kashmir) where PoI congestion exceeded the allowable limit of 0.5 per
cent as reported by Airtel/Vodafone/Idea Cellular through emails in
September 23.
In the case of Airtel and Vodafone, the fines
imposed were for 21 LSAs, amounting to Rs 1050 crore each while in the
case of Idea, the fine was Rs 950 crore for 19 LSAs.
The
regulator had received a letter from Reliance Jio on July 14, stating
that the incumbent players were not providing it with sufficient E1s
(interconnect points, with technical parameters).
After
exchanging several communications with the three operators, the TRAI
arrived at the decision that each of them has been non-compliant to
provide anough PoI between them and Reliance Jio.
The regulator
also stated that the incumbent operators were in "non-complaince of the
terms and conditions of licence and denial of interconnection to
Reliance Jio appears to be with ulterior motive to stifle competition
and is anti-consumer."
It defined the act of the incumbent players as against public interest.
It said non-compliance of terms and conditions of licence warrants recommendations for the revocation of licence.
"However,
the Authority is mindful of the fact that revocation of the licence
will entail significant consumer inconvenience and therefore in view of
the larger public interest involved, the Authority recommends penal
action..."
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