BSNL not to cut Tata Tele's connection

In a major relief to Tata Tele Services, state-owned BSNL on Wednesday decided not to disconnect interconnection with the private telecom operators and also asked its officials not to encash the bank guarantee to recover dues.

"All field units are requested not to encash the bank guarantee and further not to disconnect the interconnection provided to Tata Tele Service and Tata Tele-Services (Maharashtra)," BSNL said in a letter to all chief general managers of various circles.

BSNL's decision comes in the wake of the Supreme Court's order last week, which directed the PSU not to disconnect interconnection or encash the bank guarantee, subject to deposit of Rs 10 crore (Rs 100 million) by two private firms within two weeks.

According to BSNL's estimates, the Tatas have to pay about Rs 300 crore (Rs 3 billion) as fee for enjoying interconnection provided by the state-run company for the Tata Walky phone service.

The fee, called access deficit charge, became applicable following the telecom tribunal re-classifying Walky as a limited mobile service.

"All field units are again requested to intimate the month wise amount of the supplementary bills raised to Tatas as the information is required to file the reply in the Supreme Court in this case by October 10," BSNL said.