Mobile tariff to move north as TRAI overturns telcos’ demand to withdraw call drop compensation order

By November 6th, 2015 AT 9:37 PM

Telecom regulator Trai has overturned telecom operators’ demand to withdraw an order of compensating the customers for up to three call drops, as a result, the telcos are most likely will pass on the burden to the customers now in the form of rise in mobile tariffs.

trai-mobile

GSM lobby group COAI and the association for CDMA operators AUSPI had written to Trai on October 27 to withdraw its regulations on call drops.

“The issues raised in your representation have already been considered by the Authority before issuing the regulations and, therefore, your request to withdraw the Telecom Consumers Protection (Ninth Amendment) Regulations, 2015 has not been agreed to by the Authority,” Trai said in separate letters to COAI and AUSPI.

The Telecom Regulatory Authority of India (Trai) had mandated that telcos are liable to compensate users at the rate of Re 1 per dropped call, with a ceiling of three dropped calls per day (or Rs 3 per day) from January 1.

On October 29, Trai met all the heads of the telcos and held an open-house discussion in New Delhi.

Telcos are of the view that with this order about 3-5% of the industry’s revenues will be wiped out. They said it is a huge burden in addition to the high spectrum costs and their high debts.

Having over six years of experience in business journalism, Krishna has a knack for writing on telecom and IT. She believes that tryst with technology is the best thing that has ever happened to the mankind. Krishna is a telecom analyst with CMR

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DuaneDUANELivingindelhiidea88Airtel Lover Recent comment authors
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Livingindelhi
Livingindelhi

To be honest, this is a blame game which everyone is going to keep on playing. One argues that all telcos built illegal towers which is not wrong, they indeed did install towers in places where they are not supposed to, however the customers expects 4g signal 2 floors down in the basement parking which is wrong. However the customer is not wrong in expecting a decent network with minimal call drops and decent voice clarity. So yes, all telcos did invest in capex, opex etcex but that doesn’t give them the right to charge through the nose. We didn’t… Read more »

DUANE
DUANE

Crap, how can you BUILD a TOWER in a place you are not supposed to ?? ROFL
Also what place would that be? Cellphone companies will place towers in areas of low coverage and/or high number of users. Why will they waste their infra in places that dont meet this criteria?

>>they indeed did install towers in places where they are not supposed to,

idea88
idea88

Mr Duane dude u are really Act as Warren Buffet .. Actually u knows everything pitfalls abt Airtel why u so hiding ?? Speak true Words nobody coming to snatch your money from your pockets !! then Sudhakar can be better than u

DUANE
DUANE

Thanks for remembering me, IDEA888

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