NO penalty on call drops, rules SC

May 11, 2016 10:47

The apex court has struck down the TRAI rule making it mandatory for telecom companies to compensate consumers for call drops, saying the notification is 'illegal, not transparent'.

According to its October 16, 2015 notification, the government made it obligatory for service providers to compensate consumers for dropped calls, at Rs 1 each for the first three calls daily.

However, telecom service providers (TSPs) contended that the TRAI decision to saddle them with penalty for call drops was a "populist" measure.

They had contended that under the terms and conditions of licence, it was only when call drops exceed a 2 per cent ceiling that operators attract penalties, and none of the telecom service providers have breached the cap or penalised on this count.

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