Trai suggests Rs 3,050 crore penalty on Airtel, Vodafone, Idea for violating quality of service rules

8 years ago Admin 0

TRAI recommended a Rs. 3,050 combined penalty on Bharti Airtel, Vodafone India and Idea Cellular for violating license norms for not giving interconnection to Reliance Jio Infocomm. adding that the telcos’ act appeared to be aimed at stifling competition and was against public interest.

TRAI recommended DoT to initiate action against each of the top three carriers in the country, saying that violating license norms warranted revocation of license, but since it would cause significant inconvenience to consumers, it has instead suggested penalties.

“It is evident that Bharti Airtel is in non-compliance of the terms and conditions of license and denial of interconnection to RJIL (Reliance Jio) appears to be with ulterior motive to stifle competition and is anti-consumer,” Trai said in the letter. “The act of Bharti Airtel is against public interest,” it added.

TRAI has recommended Rs 50 crore penalty per circle for 21 circles, barring Jammu and Kashmir, should be levied on Bharti Airtel, which totals up to Rs 1,050 crore. Similarly to Vodafone India and Idea Cellular, the sector regulator recommended a penalty of Rs 50 crore per circle for 21 circles and 19 circles, respectively. This means that Vodafone India would have to pay up Rs 1,050 crore to DoT and separately, Idea Cellular would have to pay a total of Rs 950 crore when the department takes penal action on the lines suggested by Trai.

“Non-compliance of terms and conditions of the license warrants recommendations for the revocation of the license,” the regulator said in a strongly worded communication.

“However, the Authority is mindful of the fact that revocation of license will entail significant consumer inconvenience and therefore in view of the larger public interest involved, the Authority recommends a penal action,” Trai said.

The war between top telecom operators has been on for last few months, where new entrant Jio has accused three of them of not providing adequate points of Interconnect (POI’s). Now a good time for Jio customers is coming on its way by TRAI and DoT taking strict actions against those who violate service rules.