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Mint
5 days ago
- Business
- Mint
Telcos breathe easy as DoT blocks Trai's bank guarantee demand
Telecom companies sparring with the regulator over spam calls and messages have reason for relief: After an appeals tribunal stayed penalties on them for failing to curb spam, the Department of Telecommunication (DoT) has rejected the regulator's request to encash bank guarantees for the same breach. The Telecom Regulatory Authority of India (Trai) has fined telcos more than ₹ 140 crore over the years for failing to curb spam. The telcos secured an interim stay from the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) in January on the case. Telcos told TDSAT that it is not fair to punish them for failing to curb spam given the delay in implementing long-delayed spam prevention rules. While TDSAT is expected to hear the matter again on 17 July, Trai has moved the Delhi High Court. According to an official aware of the matter, Trai has urged the court to direct the TDSAT to expedite hearing, or direct telcos to deposit half of the penalties in the meantime. The official added that TDSAT had earlier scheduled to hear the matter on 25 June, which was postponed. Queries emailed to Trai, COAI and DoT on Tuesday did not elicit any response till the press time. 'Although curbing spam and maintaining quality of services is important, the government cannot invoke bank guarantees for such issues especially when the total bank guarantees compared to the dues of telecom operators is significantly low,' a second official said, adding that Trai should first use the means available with it. Telcos owe the government dues worth around ₹ 4 trillion linked to adjusted gross revenue (AGR) and spectrum fees. The development also points to a broader disagreement between DoT and the Trai regarding their respective roles and jurisdiction in telecom governance. Trai has also proposed that DoT should allow it to have its own pool of bank guarantees, so as to encash it when telecom operators refuse to pay penalties, the first official said. Trai has formulated penalties in case of violations, but there is no securitization mechanism to recover the amount if they fail to pay, the official added. Queries emailed to DoT, Trai and the Cellular Operators Association of India (XOAI) remained unanswered. In its February recommendations on the terms and conditions of network authorizations under the Telecommunications Act, 2023, Trai said, 'it is essential that a securitization mechanism, such as a bank guarantee should be in place to cover financial dues, compliance to the authorization conditions and to ensure performance under the authorization which essentially include compliance to regulations/orders/ directions issued by Trai.' Trai said compliance with its regulations/directions/orders is a critical component of the efficient performance of authorized entities; the DoT has not accepted the recommendations. Bank guarantees are required to secure telcos' payments towards licence fees, performance fees and penalties. When guarantees are invoked, the bank is supposed to pay that much to the institution to which it was provided and the borrower has to immediately repay the bank. According to Trai's Telecom Commercial Communications Customer Preference Regulations (TCCCPR) 2018, which were amended this year, the regulator can impose penalties as high as ₹ 10 lakh per instance for failure to curb spam. 'Yes, Trai can impose financial disincentives but in case the operators do not pay such fines, the best route for Trai to recover the same is through chief metropolitan magistrate (CMM). The same, however, is a cumbersome process and undesirable as well,' said Satya N. Gupta, former principal advisor at Trai. The Trai Act gives the regulator powers to file a complaint with the magistrate to initiate criminal proceedings if a telecom operator is in violation of Trai's directions or regulations, and fails to comply. The TCCCPR regulations amended in February this year mandate telcos to analyze call and SMS patterns based on parameters such as unusually high call volumes, short call durations and low incoming-to-outgoing call ratios to flag potential spammers in real time. A third official said telcos control the network and it is their responsibility to curb the spam, which often leads to fraud. They have been penalized for the right reasons in not taking action to disconnect numbers from which spam were originating and misreporting the same, the official added. 'As for Trai's authority, the fact that telcos routinely approach TDSAT to challenge penalties does not inherently weaken the regulator's powers—but it can delay enforcement. This pattern of litigation raises a valid concern about regulatory effectiveness,' said Deepika Kumari, a partner at law firm King Stubb & Kasiva. 'While Trai's powers are intact on paper, consistent legal challenges may reduce the immediacy and impact of its directives. A clearer judicial interpretation of Trai's powers on financial disincentives could help ensure faster compliance and reinforce regulatory accountability in the sector,' Kumari added. Shashank Mishra, a partner at Shardul Amarchand Mangaldas & Co., said, 'TDSAT exercises adjudicatory powers over telecom disputes. Trai's exercise of regulatory functions are subject to such adjudication too. Such judicial review is necessary for the rule of law and separation of powers—two fundamental constitutional principles. Equally, Trai has the right to appeal the TDSAT order if it is unsound on law and/or procedure." In June 2023, Trai mandated a digital consent acquisition (DCA) system for telcos to manage and verify customer consent for commercial communications. The system, implemented under TCCCPR, aims to curb unsolicited commercial communications (spam) by creating a unified platform for registering and maintaining customer consent digitally. The principal entities such as banks, insurance companies, and other firms which send promotional messages to consumers, were asked to register user consent for receiving such messages. Principal entities hire telemarketers, which need to be registered with telecom operators, to send commercial messages. However, still there are senders/principal entities, who have not onboarded on DCA. In a meeting with the Joint Committee of Regulators (JCOR) on 25 April, Trai said the modalities for onboarding senders of commercial communication on DCA platform were deliberated. 'JCOR members agreed to engage with the senders/Principal Entities within their jurisdiction to onboard them on DCA,' Trai said. JCOR includes representatives from the Reserve Bank of India, Insurance Regulatory and Development Authority of India, Pension Fund Regulatory and Development Authority, Securities and Exchange Board of India, the ministry of electronics and IT, among others. Trai is soon expected to come up with detailed guidelines on the DCA framework, in a bid to expedite the implementation of the system, the third official said. Notably, the Cellular Operators Association of India (COAI) had in its various representations said that Trai should have brought delivery telemarketers and over-the-top (OTT) platforms under regulation to manage unlawful communication, and then release the amended rules. 'It would be critical to establish a regulatory framework to ensure accountability from all stakeholders in the ecosystem, including OTT platforms and telemarketers/principal entities,' COAI had said in a statement in February, after Trai issued amendments to TCCCPR. 'It is important for Trai to bring telemarketers under some sort of authorization framework as they are the source of spam calls and messages. If properly implemented, it will benefit the people at large,' Gupta added. Trai is currently discussing the need to bring telemarketers under such a regime.
Time of India
28-05-2025
- Entertainment
- Time of India
TDSAT restrains Sony from disconnecting signals to Tata Play; directs interim payment of ₹40 crore
The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has directed broadcaster Sony Pictures Networks India (SPNI), legally known as Culver Max Entertainment, not to proceed with its disconnection notice issued to direct-to-home (DTH) operator Tata also ordered Tata Play to pay ₹40 crore to SPNI within two weeks as a part payment against the broadcaster's claimed dues of ₹128 crore. The amount, the tribunal said, would be adjusted against the final liability at the time of the final admitting Tata Play's petition challenging the disconnection notice dated May 21, a TDSAT bench comprising Chairperson Justice D.N. Patel and Member Subodh Kumar Gupta listed the matter for directions on July 23. 'We hereby stay the operation, implementation and execution of the notice issued by the respondent (SPNI) dated 21.5.2025,' the tribunal said in its order, adding that the stay will remain in effect until the next hearing. The tribunal also urged both parties to reconcile their disputes, including account-level reconciliations. SPNI had been running scrolls advising viewers to switch to other DTH or cable TV operators to access its channels. Tata Play had earlier decided to drop Sony channels from its packs. Tata Play and SPNI have been at loggerheads over commercial disagreements regarding the renewal of their annual subscription deal. While SPNI is seeking a fee hike, Tata Play has pushed back, citing declining viewership of Sony channels. Representing Tata Play, senior counsels Dr. Abhishek Manu Singhvi and Meet Malhotra argued that the broadcaster's demand was unjustified. They said Tata Play had already paid around ₹4,000 crore over the past decade, including ₹700 crore annually, and had made substantial payments since SPNI's initial communication in March 2025 seeking dues of ₹300 crore. They also claimed the ₹128 crore demanded was neither due nor payable on the notice date, and accused SPNI of not properly considering set-off amounts. The counsels further alleged that SPNI violated Regulations 17 and 35 of the 2017 Broadcasting and Cable Services Consumer Protection regulations . Acknowledging the petition and supporting documents, the tribunal noted a prima facie case in Tata Play's favour, adding that the balance of convenience also lay with the DTH operator. It warned that failing to grant the stay could cause irreparable harm to Tata Play. Appearing for SPNI, senior counsel Abhishek Malhotra submitted that the scrolls would be withdrawn if Tata Play made some payment and the accounts were reconciled. Based on these assurances, the tribunal refrained from issuing a detailed order at this stage. Tata Play, jointly owned by Tata Sons (70%) and Walt Disney (30%), reported a consolidated net loss of ₹510 crore for FY25, up 44% from ₹354 crore the previous year. Revenue fell 5.46% to ₹4,082 crore due to subscriber losses driven by increased competition from DD Free Dish and the growing popularity of OTT platforms.
Time of India
27-05-2025
- Business
- Time of India
TDSAT restrains Sony from disconnecting signals to Tata Play; directs interim payment of Rs 40 crore
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has directed broadcaster Sony Pictures Networks India (SPNI), legally known as Culver Max Entertainment, not to proceed with its disconnection notice issued to direct-to-home (DTH) operator Tata Play TDSAT also ordered Tata Play to pay Rs 40 crore to SPNI within two weeks as a part payment against the broadcaster's claimed dues of Rs 128 crore. The amount, the tribunal said, would be adjusted against the final liability at the time of the final admitting Tata Play's petition challenging the disconnection notice dated May 21, a TDSAT bench comprising Chairperson Justice D.N. Patel and Member Subodh Kumar Gupta listed the matter for directions on July 23.'We hereby stay the operation, implementation and execution of the notice issued by the respondent (SPNI) dated 21.5.2025,' the tribunal said in its order, adding that the stay will remain in effect until the next tribunal also urged both parties to reconcile their disputes, including account-level had been running scrolls advising viewers to switch to other DTH or cable TV operators to access its channels. Tata Play subsequently decided to drop Sony channels from its dispute stems from commercial disagreements over the renewal of the annual subscription deal. While SPNI is seeking a fee hike, Tata Play has pushed back, citing declining viewership of Sony Tata Play, senior counsels Dr. Abhishek Manu Singhvi and Meet Malhotra argued that the broadcaster's demand was unjustified. They said Tata Play had already paid around Rs 4,000 crore over the past decade, including Rs 700 crore annually, and had made substantial payments since SPNI's initial communication in March 2025 seeking dues of Rs 300 also claimed the Rs 128 crore demanded was neither due nor payable on the notice date, and accused SPNI of not properly considering set-off amounts. The counsels further alleged that SPNI violated Regulations 17 and 35 of the 2017 Broadcasting and Cable Services Consumer Protection regulations Acknowledging the petition and supporting documents, the tribunal noted a prima facie case in Tata Play's favour, adding that the balance of convenience also lay with the DTH operator. It warned that failing to grant the stay could cause irreparable harm to Tata for SPNI, senior counsel Abhishek Malhotra submitted that the scrolls would be withdrawn if Tata Play made some payment and the accounts were reconciled. Based on these assurances, the tribunal refrained from issuing a detailed order at this Play, jointly owned by Tata Sons (70%) and Walt Disney (30%), reported a consolidated net loss of Rs 510 crore for FY25, up 44% from Rs 354 crore the previous year. Revenue fell 5.46% to Rs 4,082 crore due to subscriber losses driven by increased competition from DD Free Dish and the growing popularity of OTT platforms.
