Trai seeks more teeth to rein in telcos, will approach govt

It wants changes to the 1997 law to gain powers to penalise telcos and seek bank guarantees

- Jatin Grover

The Telecom Regulatory Authority of India (Trai), set up in 1997 to regulate telecom services, tariffs and promote fair competition, wants stringent financial punitive powers to ensure that companies under its oversight strictly play by the rules.

According to three government officials aware of the matter, the telecom regulator is working on a plan to get the decades-old Trai Act, 1997 amended and give itself more teeth.

To be sure, Trai has sufficient powers to regulate telecom service quality, resolve disputes through TDSAT, and protect consumer interests, but lacks adequate enforcement powers.

"Trai cannot impose strong penalties, attach bank accounts or properties in case of violation, and ask for bank guarantees," the first of three officials cited earlier said, all of whom spoke on the condition of anonymity.

This official said the gaps in the Trai Act make it difficult for the regulator to effectively enforce rules and ensure compliance in the telecom sector.

A key demand from the regulator is to have the powers to seek bank guarantees from telecom operators.

The bank guarantee will bring seriousness in compliance from telecom operators and can be invoked in case they fail to pay penalties imposed by the regulator, the first official said.