Call drops: TRAI to probe tariff plans, issue draft paper

Move follows a direction from DoT to TRAI to suggest a disincentive mechanism for call drops

Press Trust of India New Delhi
Last Updated : Aug 23 2015 | 11:47 AM IST
To check the call drops menace, telecom regulator TRAI is examining whether mobile operators are minting money by inducing the phone calls to drop midway, while it also plans to launch a consultation paper to devise a broader mechanism to address this problem.

"We are coming out with a consultation paper on call drops. We will consult all the stakeholders on the various facets of call drops," Telecom Regulatory Authority of India (TRAI) Chairman R S Sharma told PTI.

The regulator is also examining whether there are any tariff plans of the service providers wherein call drops actually incentivise or benefit the companies, he added.

"We have called for the information from the companies," Sharma said.

This follows a direction from the Department of Telecom to TRAI to suggest a disincentive mechanism for call drops and also examine the tariff plans of operators to ascertain whether they incentivise call drops.

ALSO READ: Call drops: Telecom operators demand national tower policy

The industry has refuted charges of deliberate call drops and the companies have instead put the blame on lack of mobile towers and spectrum for the problem.

Bharti Airtel (India and South Asia) Gopal Vittal had recently said that about 95 per cent plans are second-based, so they don't earn anything if a call gets dropped.

However, Telecom Secretary Rakesh Garg said there are certain plans wherein customers get some free minutes and the billing is minute-based, which need to be examined.

Hitting out at telecom operators for lack of investment in networks leading to call drops, the government said they can not escape the responsibility of meeting standards as it is their basic service obligation.

Rejecting the reasons given by the operators, such as shutting down of towers and radiation fears, the government has said all these factors existed earlier too but the problem has worsened in the last seven months.

ALSO READ: Call drop: Telcos say lack of towers to worsen situation

Garg said if expenditure on spectrum is set aside, operators have invested only about 13 per cent of their revenue into infrastructure.

A recent TRAI report found that most of telecom operators in Delhi and Mumbai were not meeting the prescribed standards regarding call drops.

The industry is demanding a uniform national policy for towers to tackle the problem.

The operators said that about 7,000-10,000 sites are locked or shut down across major cities like Delhi, Mumbai, Chandigarh, Bengaluru, Hyderabad, Patna and Jaipur due to various reasons, including sealing orders by local bodies without prior notice.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Aug 23 2015 | 11:42 AM IST

Next Story