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

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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.

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"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.

Reported By

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 mankind. Krishna is a telecom analyst

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