India’s Supreme Court could cancel RCOM interconnect agreement

14 Jul 2010

The Supreme Court of India has warned Reliance Communications (RCOM) that it could have its interconnection agreement cancelled should it be found to have masked international calls as ‘domestic’ ones through auto-call rerouting. According to Indian Express, state-owned telco Bharat Sanchar Nigam Ltd (BSNL) has alleged that RCOM has carried out the practice of illegally converting international calls to domestic since 2004, which, the former claims, has seen it suffer significant losses. In considering the matter the Court criticised BSNL for not taking action itself against RCOM by halting the arrangement between the two companies, but confirmed that it will investigate the claims. Alongside the cancellation of its interconnect agreement the Court has also said that if found guilty, RCOM could face ‘stringent measures’, but it did not detail what these may be. The next hearing on the matter will now take place on 27 August 2010.