No Compensation For Call Drops, Rules SC


New Delhi: The Supreme Court today hearing the  plea by associations of telecom operators challenging sector regulator TRAI’s October 16, 2015 notification obligating service providers to compensate consumers for dropped calls, at each for the first three calls daily, strikes down TRAI regulation imposing cost on telecom companies for call drops, holds it unreasonable

SC says ‘TRAI recommendation making it mandatory for telecos to compensate subscribers for call drop is arbitrary & non-transparent

The verdict by a bench of Justice Kurian Joseph and Justice Rohinton Fali Nariman was on the petitions by the Cellular Operators Association of India (COAI) and the Association of Unified Service Provider of India (USPAI) who have challenged the Delhi High Court’s February 29 order upholding the Telecom Regulatory Authority of India (TRAI) notification.

The judgment will be pronounced by Justice Nariman.

Telecom service providers (TSPs), in the course of the hearing, had contended that TRAI decision to saddle them with penalty for call drops was a “populist” measure to accommodate telecom consumers as these were happening for host of external consideration not attributable to them.

The associations had contended that under the terms and conditions of licence, it was only when call drops exceed a 2 percent ceiling that operators attract penalties, and none of the telecom service providers have breached the cap or penalised on this count.

However, TRAI had defended its decision to impose call drop penalty on the telecom service providers describing it as a “least invasive way to deal with the issue” and told the apex court that the service providers must enhance their investment in infrastructure as they were earning huge revenues.