TRAI Asks DoT to Encash Bank Guarantees for Telcos Not Paying Penalties: Report

An official aware of the developments shared the info with the publication. The official also said that TRAI even has the power to revoke the license of a telco if it doesn't comply with the rules. However, that would be too extreme in this case.

Highlights

  • The Telecom Regulatory Authority of India (TRAI) has asked the Department of Telecommunications (DoT) to encash the bank guarantees (BGs) since the telcos are refraining from paying the penalties.
  • The penalties that TRAI is talking about here are related to not being able to curb spam messaging.
  • The Indian government has imposed fines on the telcos over failing to curb spam messaging.

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The Telecom Regulatory Authority of India (TRAI) has asked the Department of Telecommunications (DoT) to encash the bank guarantees (BGs) since the telcos are refraining from paying the penalties. The penalties that TRAI is talking about here are related to not being able to curb spam messaging. The Indian government has imposed fines on the telcos over failing to curb spam messaging. However, they are not paying up for the penalties. Hence, according to an ET report, TRAI has asked DoT to encash the BGs that telcos have submitted.

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An official aware of the developments shared the info with the publication. The official also said that TRAI even has the power to revoke the license of a telco if it doesn't comply with the rules. However, that would be too extreme in this case. Thus, the government has been advised by TRAI that it encashes the Rs 115 crore bank guarantee submitted by the telcos to recover the penalty amount.

BSNL (Bharat Sanchar Nigam Limited) and Mahanagar Telephone Nigam Limited (MTNL) need to pay up to around Rs 50 crore for defaults over 8 to 10 years. Bharti Airtel, Vodafone Idea, and Reliance Jio on the other hand have to pay Rs 20 crore, Rs 15 crore, and Rs 12 crore, respectively. TRAI has to recommend the encashing of bank guarantees only after the telcos have refused to clear the said dues for years now.

Read More - TRAI Doubles Down on Curbing Spam Calls in India: Report

According to the report, an executive from one of the telcos said that they are engaged with TRAI on the matter. The telcos believe that they are not the ones that should be penalised for spam messages and calls. The actual culprits are telemarketers and other entities with bad intent, the telcos believe.

Reported By

Tanuja is a passionate technology and telecom buff who has been following the telecom industry for several years now.

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