The Cellular Operator's Association of India has said the basic operators' move to go to court against levying an entry fee on WLL (wireless in local loop) services has vitiated any chance of an out-of-court settlement being worked out by the group of ministers on telecom.

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The cellular industry might be left with no option but to take legal counteraction to protect its stakeholders "from continued regulatory discrimination", they said.

"This latest legal pursuit by the Association of Basic Telecom Operators seriously vitiates any chance of a settlement and strikes at the very facets of credibility and trust, which are critical for an out-of-court settlement. Cellular industry on the other hand, in spite of an adverse verdict in Telecom Dispute Settlement Appellate Tribunal, have patiently held back from appealing the same having placed their faith in the GoM for a mutually agreeable resolution," a COAI statement said.

Basic operators on Saturday had filed an appeal with the Supreme Court seeking a directive to the telecom regulator to ensure the level playing field, while deciding on the entry fee for WLL operators as per the August 8 order of TDSAT.

Basic operators argued that they would not pay an entry fee since WLL mobility was a value-added service. TDSAT on August 8, while permitting WLL services, had suggested an entry fee for WLL operators apart from limiting the mobility to within a short distance charging area.

Cellular operators have said ABTO's latest move was refusal to accept TDSAT's direction. "While WLL operators enjoy the verdict, they are cherry picking parts of the judgement which are in their favour and ignoring it where it suits them," COAI said.