Trai proposes steeper fines for telcos not reporting tariff change

Trai proposes daily fines up to ₹5 lakh on telcos for delays in reporting tariff changes, aiming to tighten compliance and ensure timely disclosures

The Telecom Regulatory Authority of India (Trai) has proposed steeper fines for telecom companies that fail to report tariff changes on time. A draft of the newly proposed regulations, released on Thursday, has mooted that a fine of ₹10,000 per day during the first week, and ₹20,000 per day thereafter, up to a maximum of ₹5 lakh, be imposed on telcos that do not adhere to the timelines for reporting changes in their tariff structure.

 

“The imposition of interest on delayed or non-payments of financial disincentives serves as a significant deterrent against intentional delays by service providers. By introducing a financial disincentive in the form of accruing interest, the mechanism ensures accountability and discourages any deliberate postponement of payments, which might otherwise occur without tangible consequences,” Trai said in its draft proposal.

 

The telecom regulator has asked stakeholders to submit their views by October 31.

 

In the draft proposal, Trai further stated that the telecom service provider would be allowed to present its case before any order imposing penalties is passed against it for failing to adhere to the tariff timeline.

 

Further, Trai has also proposed that, given the presence of similar financial disincentive provisions within other wings of the regulator, it would be prudent to eliminate overlapping provisions.

 

“This is a pragmatic approach since the metering and billing audit is conducted through the said regulation, and excess charges are detected and received under the provisions of the said regulations,” Trai said.