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Dispute Between RCOM and BSNL on Breaking of Contract

RCOM, Reliance Communication and BSNL, Bharat Sanchar Nigam Limited dispute madly on the matter of point of interconnection (POI). POI is the system by which one telecom operator provides its network to other telecom operators for calling by charging an amount in place of that.

RCOm has blamed BSNL that it had disconnected the point of interconnection (POI) of RCOm on 23rd May and 31st May in Haryana and on 4th May in Punjab due to which more than eight million customers are suffering as they are unable to call each other (both the companies). RCOM also complaints that BSNL has broken the agreement between both companies while RCom has made a payment of Rs 533 crore to BSNL. BSNL said that there are some previous dues of RCOm which have not charged yet. So there is a strong heated discussion between these two companies.

RCOM said,"In March 2011, the telecom tribunal had stayed BSNL's demands of Rs 200 crore towards access deficit charge from RCOM and also directed the state-owned telco not to disconnect PoIs between both companies. In April 2011, BSNL raised fresh ADC-related demands for the period February-November 2004. The arbitrariness of BSNL is reflected in its entirely unprecedented demand. BSNL has also raised additional interest invoices for the period November 14, 2004, to February 28, 2006, using a methodology that is totally out of line with the relevant agreements between the two operators."