In a setback to the telecom regulator, the Telecom Dispute Settlement and Appellate Tribunal has barred TRAI from intervening in any dispute arising between two operators on the terms and conditions of interconnection.

Dismissing a review petition filed by the Telecom Regulatory Authority of India against Bharat Sanchar Nigam Ltd, TDSAT said: "When TRAI has no adjudicatory functions under the Act, it cannot in turn take the stand that it has powers to pass interim orders in disputes between two operators.

"If TRAI has no powers to pass final orders, it cannot certainly have powers to intervene to pass interim orders," TDSAT said in its judgement.

"TRAI has authority to fix the terms and conditions of the inter-connectivity between the service providers and to ensure technical compatibility and effective interconnection between different service providers," it said.

TRAI relied on certain clauses (Article 17.1) of the model Reference Interconnect Offer (RIO) which deals with termination of interconnection agreement between the parties while Article 17.2 deals with withdrawal of interconnection for non-payment and Article 18 deals with disputes.

"All these Articles of model RIO may be changed by parties by mutual agreement. How can a model RIO which can even be modified by the parties entering into interconnection agreement be termed as having statutory proportions as far as this tribunal is concerned?" TDSAT said.

The regulator had submitted that the powers of TRAI to intervene in an impending disconnection by one operator with the other cannot be questioned.

However, TDSAT said under the Act, TRAI can make recommendations either suo moto or on the request of the licensor on matters relating to technological improvements of the service, measures to facilitate further growth in the sector and other compliance of terms and conditions of licences.

The scheme of legislation has very clearly spared TRAI of the work pertaining to adjudication of disputes which work has been entrusted to TDSAT, it said.