BANGALORE, India-The Department of Telecommunications (DoT) has moved court on a Telecom Regulatory Authority of India (TRAI) order, striking down Mahanagar Telephone Nigam Ltd.’s (MTNL’s) planned entry into India’s cellular services market.
In a recent sweeping order, TRAI also disallowed MTNL’s proposed entry into cellular as well as paging services in Bombay and New Delhi.
Telecom Commission Chairman A.V. Gokak said, “We will surely be challenging the order, and it is going to be done shortly.”
Meanwhile, S. Rajagopalan, MTNL chairman and managing director, commented that “MTNL has become a victim of the fight between TRAI and DoT for supremacy.”
MTNL promised cellular operations to its international investors while raising US$420 million through global depository receipts (GDR) in November-and was set to float global tenders for both suppliers and technical collaborators-but got a jolt in its proposed wireless venture due to the TRAI verdict.
“We will challenge the ruling in courts and also approach the licensing authority for validation of license,” Rajagopalan said. He ruled out petitioning TRAI for “reconsideration.”
