Delhi HC Dismisses Cellular Operators Plea, Upholds TRAI’s Penalty

Telecom operators are protesting TRAI’s decision to impose a compensation for call drop. (Photo: Reuters)

The Delhi High Court has dismissed the Cellular Operators Association plea, challenging TRAI’s notification to compensate call drops to customers. The court has upheld TRAI’s penalty.

The Telecom Regulatory Authority of India (TRAI) reportedly filed an affidavit in court, saying that call drops are a widespread problem, faced by people all over the country. TRAI solicited the court’s stance behind ordering telecom operators to compensate users for calls dropped.

TRAI stated that the compensation policy for call drops will not punish operators for call drops that occur for no fault of their own. “The technology available in the network makes it possible to clearly identify the reasons for call drops,” TRAI has stated.

The telecom regulatory body has imposed a penalty of Re 1 for every call dropped, with a maximum compensation of Rs 3 per day per user. This has led to telecom operators protesting that users will have the power to claim compensation even without an operator’s fault, leading to unprecedented losses which could be as high as Rs 54,000 crores. TRAI, said, however, that Rs 800 crore was a more accurate compensation figure.

Call drop compensation penalties were instructed to be imposed January 1 onwards, but operators refused to comply, stating Supreme Court’s January 6 hearing as the reason. The court is expected to hear the operators and TRAI today, out of which a judgement on the long-drawn issue will hopefully surface.

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