B U S I N E S S    U P D A T E

Misleading ads: TRAI notices to
Tatas, Reliance, MTNL

New Delhi, January 16
Telecom Regulatory Authority of India (TRAI) has issued show-cause notices to three basic telecom operators, Tatas, Reliance and MTNL, for “misleading” the consumers by positioning their fixed wireless phones as similar to mobiles.

The Tatas have positioned their fixed wireless phone “Walky” as “Freedom of Mobility at Landline Rates”, Reliance calls such a service “Unlimited Cordless” and MTNL’s Garuda fixed wireless is called “Mobile bhi landline bhi...”.

“TRAI has given them time till January 24 to reply to the show-cause notice,” sources said. TRAI's move comes in the wake of telecom tribunal TDSAT dismissing regulators’ earlier directive to these three operators to withdraw their ads, which was contested by Tata Teleservices, saying there had been no notice from TRAI and there was nothing “misleading” in its advertisement.

“The Interconnect Usage Charges and Access Deficit Charge regimes provide different treatment for calls from mobile and fixed line, including wireless fixed. Unless these operators advertise correctly on what they are offering, TRAI may have to charge rates applicable to them as mobile telephony, what they have claimed on their ads,” sources said.