Telecom Operators to Provide Re-1 Compensation to Users

Telecom Authority of India (TRAI) in the wake of New Year has written a notice to all the telecom operators of India to compensate the users for unwanted call drops they suffer from, this has been done in compliance to the regulations that are effective from January 1. Though service provider's remain defiant to the orders and in response state that compensation to subscribers will be paid only after court orders them to do so.

As per the sources, Trai has written to all telecom operators reminding them about call drop regulations with expectations that they have put all mechanisms in place to comply with them.

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On October 16, 2015, The Telecom Regulatory Authority of India (TRAI) issued amendment in Telecom Consumers Protection Regulations in which it added a rule mandating mobile service providers to compensate their subscribers for call dropped or automatically disconnected due to technical glitches in their network. The rules mandate telecom operators to provider Re. 1 compensation for each call dropped, with a compensation cap of Rs. 3 per day.

However, the Telecom operators deny to accept and have approached the Delhi High Court against this regulation. In words of Ashok Sud Secretary General Association of Unified Telecom Service Providers of India The matter is sub-judice and we will compensate consumers when the court directs us to do so. He further added that the industry is completely aware that there is no stay on the regulation.

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Despite the opposition being faced by TRAI, it has submitted before the court that it will not take coercive action against telecom operators till the next date of hearing due on January 6. Any coercive action for us means to even comply with the regulation. As of today our telecom operators are not ready to implement it because of various complexities that we brought to the notice of the Court, COAI Director General Rajan S Mathews said.

Some telecom operators like Vodafone, Bharti Airtel Reliance in collaboration with Cellular Operators Association of India and AUSPI state that this decision goes strictly against the basic laws of physics according to which it is impossible to provide a 100 percent call drop-free network. In their petition to court they further add that if the penalty gets levied, the companies will end up paying approximately Rs. 1,000-1,500 crores annually. However, TRAI says that the maximum outgo under the rule would not exceed Rs. 800 crores if networks are not improved.