TRAI Rejects DoT’s Call to Reconsider Penalty on Airtel, Vodafone, Idea Cellular

“However, the Authority was mindful of the fact that revocation of the licence will entail significant consumer inconvenience and therefore in view of the larger public interest involved, the Authority recommended a penal action of Rs. 50 crore per circle,” the regulator was quoted as saying.

The telecom regulator also added that these telcos provided PoIs at much shorter notices after its intervention, implying that they were capable of providing such PoIs without any delay.

The telecom department in February asked the regulator to clarify on almost a dozen points including the basis of which the penalty amount was calculated. The DoT had also asked for clarification on the provision of the law that enabled TRAI to impose a penalty.

Replying to the DoT’s query, Trai said there is no provision in the licence or regulations to deny/delay provisioning of PoIs during the test phase. On the contrary, the testing cannot be completed unless sufficient PoIs are provided, it added.

The telecom department will now consider the regulator’s views and take a final decision. Vodafone and Idea Cellular had earlier challenged the recommendations in court.

Airtel Spokesperson – “We disagree with TRAI’s observations and believe that the penalty has been recommended on the basis of an incorrect assessment of the situation on ground. We request the DOT to reject these recommendations and take into consideration the actions taken on ground by Bharti Airtel. The fact is that we have provided POIs to Jio at an unprecedented pace despite the provision of 90 days in the license.”