BSNL has challenged before the Supreme Court an order of the telecom appellate tribunal asking it to extend its reduced tariff package for 50-200 km distance, a commercially competitive decision, to other basic and cellular operators.

A Bench comprising Justice DM Dharmadhikari and Justice BN Srikrishna issued notices to the basic and cellular operators' associations on the petition of the BSNL which alleged that extension of the reduced tariff scheme to its competitors would mean their enrichment at its cost.

Appearing for BSNL, Solicitor General GE Vahanvati and advocate Maninder Singh, questioned the order November 3, 2004 order of Telecom Disputes Settlement Appellate Tribunal (TDSAT) asking the state-owned telecom service provider to extend its concessional rates to its rivals.

"One of the main issues involved in the present appeal is whether BSNL is obliged to extend benefits/reduction of tariff, which it offered to its own customers, to other competiting operators for the purpose of calculating the interconnection charges payable by the said operators to BSNL on account of carriage of their calls on its network," Vahanvati said.

BSNL said it had taken a policy decision in January 2001 to give a few concessions to its own customers through alternate packages meant to provide services at lower and affordable tariff rates.

Extension of these concession to customers of other service providers would lead to the rivals' "undue enrichment" as their customer was not aware of the actual amount paid by the private service provider to BSNL as access charges.