Trai rubbishes telcos’ claims on call drop compensation order, says financial implications even less than Rs 200 cr per quarter

By November 13th, 2015 AT 8:01 PM

Rubbishing telecom operators’ claims that call drop compensation to subscribers will lead to a revenue loss of Rs 54,000 crore per year, telecom regulator Trai has said that such figures are exaggerated and financial implications would be even less than Rs 200 crore per quarter.


“It is observed that the total financial implications on telecom service providers (TSPs) is likely to be not more than Rs 200 crore per quarter, which is less than 1 per cent of the total revenues of TSPs,” Trai said in a statement today.

“However, as per the regulation, there is a ceiling on relief of Rs 3 per subscriber per day. Thus, the likely financial implications would be even less than Rs 200 crore per quarter,” it added.

The telecom regulator had mandated all telecom companies 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), with effect from January 1.

The telcos were of the view that such a regulation will have severe impact on their revenues, with Rs 54,000 crore of loss per annum, and they will be compelled to pass on the burden to the end-users.

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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Sudhakaridea88tituMadhan Kumarbibhu Recent comment authors
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They taught me in school, in maths you can have multiple formulas to solve a problem, steps will be different but answer will be absolutely same.
During MBA they taught me in statistics, when drawing statistical inference and applying analytics answers will vary as per random samples, technique used and error. So much difference in the calculation. Becoz of TRAI and all these telcos, Indian students find mathematics and statistics complicated.


it is more due to greed than basic principles of math that the math is complicated


Less than 1% of revenue loss means having less than 1% of call drops on network of all operators..
Considering this, I request Honorable Prasad ji to use Aircel by porting out from AVOID network and reevaluate financial implications.. Thank you..

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