Telcos to telecom minister: Trai’s call drop compensation order big blow for Digital India

GSM and CDMA lobby groups, COAI and AUSPI, have said that Trai’s compensation order on call drops would be a setback for government’s Digital India initiative and would also affect investment into the sector. In a joint letter to Telecom Minister Ravi Shankar Prasad, they requested government’s intervention in the matter as the telcos are likely to lose about Rs 54,000 crore a year following Trai’s order.


The telcos are of the view that such a revenue loss will influence the government’s Digital India program.

Ashok Sud, Secretary-General of AUSPI, was quoted as saying to ET that “In case our plea is not accepted, then we will have to take the call on whether to go court on the matter.”

The Telecom Regulatory Authority of India (Trai) has mandated all telecom operators to compensate customers with Re 1 per dropped call with a cap of three calls a day, with effect from January 1. The sectoral regulator also indicated that the operators can fix the problem of call drops as it is technically feasible from their side.

Also read: Compensation regulation for call drops is here to stay, says Indian telecom regulator

“The licence conditions require operators to cover a minimum of 90% of a service area, but going by this order we will be penalised for coverage problems even in the remaining 10%,” Sud said.

“Secondly, the quality of service parameters of the regulator also permit a call drop rate of under 2%, and globally it is a well-accepted fact that call drops do occur. This order will again go against the same quality of service parameter,” he said.

Reported By

Leave a Reply

21 Comments on "Telcos to telecom minister: Trai’s call drop compensation order big blow for Digital India"


Sort by:   newest | oldest
November 10, 2015 12:13 am 12:13 AM

I think all telcos should now switch to cdma network as the call drop on these networks are very rare & call clarity is best.
“MAKE CDMA MANDATORTY” & see the change.

November 10, 2015 11:46 am 11:46 AM

No cdma users feel like trapped like me using mts dangle and I cannot change operator or anything

subhodip mitra
November 9, 2015 7:19 pm 7:19 PM

Honourable minister knows that bsnl has maximum call drop issues in most circle…so who will pay for bsnl ???

November 9, 2015 3:51 pm 3:51 PM
Call drop Prasad is concerned about QoS on 2G that too in Metro cities where people own highest number of 3G handsets.. There are some TT commentors too who are very much concerned about 2G in spite of living in one of the metro city… If you want to make India digital then you need to drop 2G technology and move to can’t make India digital by holding on to medieval technology.. Atleast 2G should be dropped in Metros.. India is still way way way behind in optic fibre penetration and telcos need lot of money to match with… Read more »
November 9, 2015 6:39 pm 6:39 PM

Can you prove that the 3G coverage of any operator is same as 2G?. If not, then you do not have any rights to talk about 3G and 4G.

Madhan Kumar
November 10, 2015 7:27 pm 7:27 PM


Prasath J
November 10, 2015 1:54 pm 1:54 PM

Sudhakar is 100% correct this time..

Dear Amygdala, its the scamgres$ who is screaming in Parliament for resignation of Telecom Minister wrt call drops, Even though call drops issues are there for many years.. Now you want to scrap the 2G totally and live with much more call drops and bad coverage… 3G on 2100MHz can carry much more voice calls than 2G, but what about in-building coverage?? With bad in-building coverage the call drop increases further..

November 10, 2015 4:08 pm 4:08 PM
@ Prasath Ji My comments are not politically motivated.. I know how people affiliated to Scamgress protested outside airtel and Vodafone(3rd class premium network)office in Delhi for call drops soon after successful auction this year..It was obviously publicity stunt to show present government in bad light.. All the present condition of our telecom sector and PSU BSNL is due to previous government.. I don’t blame present government for what telecom sector has become… All I want to convey is that present government should not take bad decision like this one where eventually customers have to bear their burden.. I can… Read more »
November 11, 2015 1:06 pm 1:06 PM

0.01% of 1 crore minutes is 1000 and not 1 lakh.

November 11, 2015 1:45 pm 1:45 PM

My bad!! It was just to give idea..

November 10, 2015 9:16 am 9:16 AM

and the 54 crore figure that telcos have projected seems like an admission that “Yes our networks s**k” and yes there indeed is a lot of call drops and we dont plan to rectify it immediately but reap more and more and more profits

November 10, 2015 9:14 am 9:14 AM

ha ha..well said

November 9, 2015 7:30 pm 7:30 PM
No operator have fully penetrated their 3G but they are present in every cities and almost every towns where they have license for 3G.. And in coming years will cover newer circles where they got spectrum in recent auction and in rural areas too.. They are in rapid expansion mode, for which they need to do heavy investment… Airtel have highest penetration of 2G pan India followed by BSNL and the third class premium network Vodafone is nowhere near than this two.. I live in Mumbai where 2G/3G have almost 100% areas covered… I don’t need to give you the… Read more »
November 9, 2015 10:28 pm 10:28 PM

as I experienced airtrl in Mumbai . it have more call drops in Mumbai … what u saying airtel good ??

November 9, 2015 7:08 pm 7:08 PM

Well said man. That’s the exact point which I was thinking.

November 9, 2015 5:26 pm 5:26 PM

If in a year telcos will loose Rs. 54,000/- crore by providing compensation, then why not telcos invest that kind of money in infrastructure and improve QOS and by that telcos can gain customers and don’t have to pay penalties and can improve there profit also??

So stop blaming Government for own fault and start working on QOS.

November 9, 2015 6:25 pm 6:25 PM
If they are not investing then you would have stuck with 2G..get a life are now entering in 4G Era with improved 3G day by day..Read my comments carefully, don’t read in between the lines… And yes they need that money to lay fibre optics, install new tower etc etc..without which 3G and 4G will be epic fail.. And for call drop which happen, it’s technically impossible to eliminate fully in wireless network, you can only reduce to certain limit which telcos have already done in most of the circles..Wireless network have its own limitations which call drop Prasad… Read more »
November 10, 2015 11:27 am 11:27 AM

Take some time to understand my comment fully.

Rs. 54,000 crore in a year is not small amount. Which means that operators has not invested properly or not willing to improve there infrastructure.

I am using all i.e. from Landline to 2G to 3G and to 4G.

And don’t get personal with what instrument I have to use, that is I have to decide and not you.
So stick to point rather then making political comments.