Delhi HC stays Re 1 call drop compensation order

HC will hear the matter Jan 6 and asked Trai not to take any coercive action against the telcos

Delhi High Court today imposed an interim stay on an order of Telecom Regulatory Authority of India (TRAI) which mandates telecom companies to pay consumers in case of call disruptions from January 1 next year.

The High Court will hear the matter on January 6 and meanwhile, has asked the regulator not to take any coercive action against the telecom service providers. TRAI, on the other hand, pleaded that Department of Telecommunication (DoT) be made a party to the case and the court agreed to its suggestion.  

As per TRAI regulation on call drop, the  telecom firms were to pay their customers Re 1 per call drop upto a maximum of three calls per day from next year onwards.

The regulation was imposed in response to heavy consumers complaints of call drops in metro areas. Telecom firms, who opposed the decision of TRAI, had moved the court via their forum Cellular Operators Association of India (COAI).

The telecom firms have been protesting the call drop compensation decision of TRAI saying in mobile voice transmission call disruption cannot be completely ruled out  and even in global standards a certain amount of call drop is allowed. Besides, the firms also complain about inconsistent tower policy throughout the country and protest of civil society in setting up new towers as an excuse for call drop.

Telenor, the Norwegian telecom firm, which announced compensation to its 48 million users in case of call drops, also has criticised the decision of TRAI.

"We have kept it very simple: For every call drop, a customer gets a call back. There is a consultation process and we have given our views. But, what the government is proposing might not be absolutely possible that way for telecom players," Upanga Dutta, chief marketing officer, Telenor India told Business Standard recently.