Latest news with #Trai
Mint
11 hours ago
- Business
- Mint
Trai wants more enforcement teeth to rein in telcos, may ask govt to amend rules
The Telecom Regulatory Authority of India (Trai), set up in 1997 to regulate telecom services, tariffs and promote fair competition, wants stringent financial punitive powers to ensure that companies under its oversight strictly play by the rules. According to three government officials aware of the matter, the telecom regulator is working on a plan to get the decades-old Trai Act, 1997 amended and give itself more teeth. To be sure, Trai has sufficient powers to regulate telecom service quality, resolve disputes via TDSAT, and protect consumer interests, but lacks adequate enforcement powers. 'Trai cannot impose strong penalties, attach bank accounts or properties in case of violation, and ask for bank guarantees," the first of three officials cited earlier said, all of whom spoke on the condition of anonymity. This official said that the gaps in the Trai Act make it difficult for the regulator to effectively enforce rules and ensure compliance in the telecom sector. The officials A key demand from the regulator is to have the powers to seek bank guarantees from telecom operators. The bank guarantee will bring seriousness in compliance from telecom operators and can be invoked in case they fail to pay penalties imposed by the regulator, the first official said. Also Read: Tata Communications renews private 5G push In fact, the issue of giving more powers to Trai also came up at a recent meeting of Trai officials with the department-related Parliamentary Standing Committee on Home Affairs, a second official said. This official added that the proposal, which is in the works, will be sent to the department of telecommunications (DoT), under the Union communications ministry. Queries emailed to Trai did not elicit any response till press time. Why Trai can't act tough on telcos As per the Trai Act, 1997, its powers are primarily regulatory, advisory, and enforcement-focused through directions. This is different from other regulators. For example, the markets regulator Securities and Exchange Board of India (Sebi) can pass binding orders independently. However, for Trai, the power to enforce orders is limited. The telecom regulator, for instance, relies on the department of telecommunications for licence actions. One of the key issues is also the enforcement of financial disincentives or penalties, which Trai does not have powers on. 'Trai can enforce a limited penalty but they don't have the power to recover that penalty," said Satya N. Gupta, a former principal advisor at Trai. According to Gupta, the telecom regulator should have the powers to grant licence and implement policy, whereas the government should just make policies. 'In almost every country, the regulator has licensing power. In India, the government has kept both licensing and policy making," Gupta said, adding that Trai has control over a few things such as quality of service orders and tariffs (which is now under forbearance). A key reason for Trai to seek more powers also stems from the financial disincentives worth over ₹140 crore imposed on telecom operators for failing to curb spams, which the operators refused to pay and sought an interim stay in the Telecom Disputes Settlement and Appellate Tribunal (TDSAT). The case is scheduled to be next heard on 8 August. Also Read: Reliance Jio Q1 results: 5G, home broadband milestones boost growth 'It is not illegal for telcos to challenge such orders by Trai but it delays enforcement. Often, operators do not take such orders seriously and also delay compliance with the regulator's request on sharing of certain data for research and investigation," the third official said, adding that Trai can impose some penalties, but not enough to hold companies fully accountable for serious violations. It lacks the teeth to enforce bigger actions — that's the problem, the official added. Call for binding powers, guarantees 'Trai should be empowered to directly issue, amend, or revoke telecom licences, rather than leaving this authority solely with the Department of Telecommunications. This would allow Trai to hold service providers more directly accountable," said Murtuza Kachwala, managing director at business consulting firm Protiviti Member Firm for India. 'Its recommendations—on tariffs, service quality, and consumer protection—should carry more weight by being made binding, rather than just advisory, so operators are obligated to follow them unless a legal challenge overturns them," Kachwala said. According to Kachwala, Trai's enforcement powers should be upgraded so it can independently impose penalties, fines, or other sanctions on operators that violate regulations—similar to the powers Sebi holds in the financial sector. Currently, if telecom operators do not comply with Trai's order on financial disincentives, the best route for Trai to recover the same is through the chief metropolitan magistrate. 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. However, the process is cumbersome and Trai has not exercised the powers in the last many years, the third official said. In February, the regulator also recommended to DoT that the authorization regime for licence holders such as telecom operators should include a provision for a bank guarantee. This guarantee would cover financial dues and ensure compliance with Trai's regulations, orders, and directions issued from time to time. Also Read: Bharti Airtel slashes pay hikes for employees, including top brass Trai made these comments in its recommendations on the terms and conditions of network authorizations under the Telecommunications. Trai had said that compliance with its orders and regulations is a critical component of the efficient performance of authorized entities (telecom service providers). The DoT, however, 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.
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Business Standard
a day ago
- Business
- Business Standard
Tired of promotional calls? Trai to launch interface to block them with tap
Are you tired of your mobile buzzing throughout the day with promotional calls and messages? Help might finally be on the way as the Telecom Regulatory Authority of India (Trai) is working with banks and telecom providers to roll out a unified digital interface that will allow users to register, review, and revoke consent for promotional communications. Why it matters The move could mark a turning point in the consumer's long battle with unsolicited commercial communication (UCC). Despite earlier regulations, spam and fraud continue to proliferate through telecom networks, often exploiting outdated or unverifiable consent systems. What's the latest Business Standard reported on Tuesday that Trai held a high-level meeting with regulators including RBI, Sebi, DoT, and other stakeholders. The goal: Develop a secure digital consent framework that empowers users to control commercial communications. Banks in the ongoing pilot include: SBI, PNB, ICICI, HDFC, Canara Bank, and Axis Bank. The interface will allow users to digitally record, track, and revoke consents across service providers through a tamper-proof platform. New caller ID system and pilot projects Trai also highlighted progress in: Rolling out the 1600-numbering series for verified commercial calls Implementing SMS header suffixes to distinguish message types (promotional, transactional, government, etc) Introducing a major pilot programme to transition from paper-based consents to secure digital ones 'A major pilot project is underway to enhance consumer control over commercial communications,' Trai said. Trai's evolving anti-spam measures In April, the Department of Telecommunications (DoT) blocked 175,000 numbers following public reports via the Chakshu platform, a citizen-led fraud-reporting tool. The unified platform will be integrated with telecom and banking apps to simplify opt-in and opt-out preferences The regulator is expected to publish formal guidelines before the end of the quarter
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Business Standard
2 days ago
- Business
- Business Standard
Trai meets RBI, Sebi, MHA, Meity, other regulators on curbing spam, fraud
The Telecom Regulatory Authority of India (Trai) on Tuesday met representatives from the Reserve Bank of India, the Securities and Exchange Board of India, the Ministry of Electronics and Information Technology, the Department of Telecommunications (DoT), the Ministry of Home Affairs (MHA), and other sectoral regulators to discuss measures against spam, fraud, and misuse of telecom infrastructure. "In an increasingly digitalised world, cross-sectoral collaboration among regulators is crucial for the coordinated enablement of services and the protection of consumers from harm. In a digital-first economy, collaboration among financial sector regulators, digital communication regulators, and security agencies becomes paramount," Trai Chairman Anil Kumar Lahoti said. During the meeting on Tuesday, the joint committee of regulators decided that, although there was an urgent need for a transition to the 1600-series for all commercial calls in the banking, financial services, and insurance sector, it should be implemented in a phased manner, depending on the scale of operations of the companies in that sector. Further, the regulators launched a pilot project on digital consent acquisition to replace unverifiable, offline consent with a secure digital mechanism for user consent on commercial calls and messages. 'The new mechanism will enable consumers to digitally register, review, and revoke consents through a simple, unified, and tamper-proof interface. Four dedicated working groups will oversee the technical, operational, and awareness-building aspects of the pilot,' Trai said. Additionally, the joint committee of regulators discussed the need for a new enforcement tool that would enable the automated exchange of spam and cyber-fraud data between the MHA's Indian Cyber Crime Coordination Centre and the Digital Intelligence Platform of the DoT. 'This will enable swift action against the telecom resources of the fraudsters, such as number disconnection, to prevent them from carrying out further frauds,' Trai said.
Time of India
6 days ago
- Business
- Time of India
Breather for telecom operators from paying Rs 141 cr penalty over spam
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel New Delhi: India's telecom operators need not pay penalties to the tune of ₹141 crore till August 8 for failing to control spam. The regulator had levied the fines on the telcos, but Telecom Disputes Settlement & Appellate Tribunal (TDSAT) has put off the payments till the next date of hearing in the the matter till next month, the tribunal had at a hearing Thursday asked the Telecom Regulatory Authority of India (Trai) to submit an affidavit on the sides presented their arguments during the hearing. As Trai has to share further information, the tribunal asked the counsel for the regulator to file an affidavit containing the requisite regulator had levied penalties on all three private telcos-Reliance Jio, Bharti Airtel and Vodafone Idea-as well as state-run Bharat Sanchar Nigam Ltd (BSNL) for failing to control the private operators had challenged the move, arguing that the regulator should not have levied the penalties when an anti-spam platform was still in the process of had stayed Trai's penalties in fines were levied as part of the Telecom Commercial Communications Customer Preference Regulations, 2018 (TCCCPR). The telcos argue that the delay in implementation of spam control measures was caused due to Covid and that they were not responsible for support their point, the telcos submitted details to the TDSAT stating that when Trai imposed the penalties, the digital consent acquisition (DCA) platform was still being staying the penalties in its January 28 order, the TDSAT had observed that telecom firms were not responsible for the delay in implementation of the regulations, including the DCA."Thus, it is unfair and arbitrary on the part of the respondent to impose financial disincentives on the appellants (telcos) for something which was beyond their control," TDSAT had said in the levying of penalties on telecom firms as part of the TCCCPR has been a point of dispute between the regulator and the telcos. While the regulator has been imposing penalties on telcos, it has not realised any money as operators contended that they should not be held accountable for something which they don't control or to get the amount itself, the regulator had even asked the Department of Telecommunications (DoT) to encash the bank guarantees of the companies to recover the amount. But DoT has not agreed to the request.
Time of India
6 days ago
- Business
- Time of India
Telcos get temporary relief in ₹141-crore spam penalty case
New Delhi: India's telecom operators won't need to pay penalties to the tune of around ₹141 crore levied by regulator for not being able to control spam till August 8, the next date of hearing on the case in the Telecom Disputes Settlement & Appellate Tribunal ( TDSAT ). The telecom tribunal, at a hearing Thursday, adjourned the matter till August 8, and asked the Telecom Regulatory Authority of India ( Trai ) to submit an affidavit on the matter. During the hearing, both sides presented their arguments. As Trai has to share further information, the tribunal asked the counsel for the regulator to file an affidavit containing the requisite details. The regulator had levied penalties on all three private telcos - Reliance Jio , Bharti Airtel and Vodafone Idea as well as state-run Bharat Sanchar Nigam Ltd. (BSNL) - for failing to control spam. However, the operators had challenged the penalties, arguing that the regulator should not have levied the penalties when an anti-spam platform was still in the process of development. TDSAT had stayed the Trai's penalties in January. The fines were levied as part of the Telecom Commercial Communications Customer Preference Regulations , 2018 (TCCCPR). The telcos argue that the delays in implementation of spam control measures were caused due to Covid and they were not responsible for the delay. To support their point, the telcos submitted details to the TDSAT stating that when Trai imposed the penalties, the digital consent acquisition (DCA) platform was still being deployed. While staying the penalties in its January 28 order, the TDSAT had observed that telecom firms were not responsible for the delay in implementation of the regulations, including the DCA. 'Thus, it is unfair and arbitrary on the part of the respondent to impose financial disincentives on the appellants (telcos) for something which was beyond their control,' TDSAT said in the January order. The levying of penalties on telecom firms as part of the TCCCPR has been a bone of contention between the regulators and telcos. While the regulator has been imposing penalties on telcos, it has not realised any money as operators contended that they should not be held accountable for something which they don't control or perpetuate. Failing to get the amount itself, the regulator had even asked the Department of Telecommunications (DoT) to encash the bank guarantees of the companies to recover the amount. But the DoT has not agreed to the request of Trai. The regulator has been strengthening the TCCCPR rules, but the telcos argue that since key stakeholders like telemarketers, over the top (OTT) have been kept out of the purview of the rules, there won't be desired results to curb spam.
