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Reliance Communications says BSNL breached agreement
Published on 13 Jun. 2011 10:07 PM IST
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: Leading telecom service provider Reliance Communications (RCOM), part of the Anil Dhirubhai Ambani Group (ADAG), Monday said the state-owned Bharat Sanchar Nigam Limited (BSNL) had breached the interconnect agreement by disconnecting calls originating on its network.
BSNL disconnected point of interconnection (POI) of Reliance Communications in Haryana May 23 and 31 and in Punjab May 4, citing non-payment of outstanding dues, affecting 3.96 million customers of the ADAG firm.
POI is a system in which a telecom operator provides access to its network to other telecom service providers for routing calls. Private companies had to pay a fee for this facility -- access deficit charge (ADC) -- to BSNL to facilitate rollout of telecom network in rural areas. The ADC was, however, scrapped by the telecom regulator in March 2008.
RCOM said that its ADC dispute with BSNL was sub-judice as the case was before the Supreme Court and that the ADAG firm had been complying with Telecom Disputes Settlement and Appellate Tribunal (TDSAT) rulings in this matter. “In April 2011, BSNL raised fresh ADC-related demands for the period February-November 2004,” said a statement from RCOM, and termed the BSNL demand as “entirely unprecedented”.
RCOM said it had proposed to BSNL for the final settlement of all pan-India access deficit charge payment disputes from November 14, 2004, to February 28, 2006.
RCOM also said it has made a payment of `533 crore towards full and final settlement towards interconnection with BSNL, and additionally also made a payment of `55 crore under protest.

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