DoT Blocks Bank Guarantee Demand in Relief to Telcos

Telecom regulator has so far fined telecom firms over ₹140 cr for failing to check spam calls

- Jatin Grover

Telecom companies sparring with the regulator over spam calls and messages have reason for relief: After an appeals tribunal stayed penalties on them for failing to curb spam, the Department of Telecommunication (DoT) has rejected the regulator's request to encash bank guarantees for the same breach.

The Telecom Regulatory Authority of India (Trai) has fined telcos more than ₹140 crore over the years for failing to curb spam. The telcos secured an interim stay from the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) in January on the case. Telcos told TDSAT that it is not fair to punish them for failing to curb spam given the delay in implementing long-delayed spam prevention rules.

While TDSAT is expected to hear the matter again on 17 July, Trai has moved the Delhi High Court. According to an official aware of the matter, Trai has urged the court to direct the TDSAT to expedite hearing, or direct telcos to deposit half of the penalties in the meantime. The official added that TDSAT had earlier scheduled to hear the matter on 25 June, which was postponed.

Queries emailed to Trai, COAI and DoT on Tuesday did not elicit any response till the press time.