Trai proposes steeper fines for telcos that don’t report new plans and prices on time

The Telecom Regulatory Authority of India (Trai) wants to tighten the rules for telecom operators and internet service providers that don’t report their new plans or prices on time.

A new draft order released on Thursday for public feedback proposes much steeper penalties — starting at ₹10,000 a day for the first week of delay, and doubling to ₹20,000 a day after that, up to a maximum of ₹5 lakh. It also calls for a graded penalty structure in which fines are based on the nature and extent of the violation.

An official said the restructuring was proposed due to instances of companies not taking reporting deadlines seriously, something that could hurt fair competition and leave consumers in the dark about changes.

On 12 September, Mint reported Trai had asked Reliance Jio Infocomm Ltd and Bharti Airtel Ltd to explain why they removed their cheapest 1GB entry-level mobile plans, which cost ₹249, in August: Jio was the first to remove the plan from its website, and Airtel followed suit. Jio’s plan offered 28-day validity, while Airtel’s was valid for 24 days.

Trai has also proposed cleaning up overlapping rules under which different fines are imposed by different wings of the regular. It also said charging interest on delayed payments for these penalties would also ensure compliance.

According to the Telecommunication Tariff (52nd Amendment) Order, dated 19 September 2012, telecom operators must report any new tariff plans, or changes to existing ones, to Trai within seven working days of its implementation. This is known as the ‘reporting requirement’. The idea is to allow Trai to review and intervene if a change is anti-competitive, predatory, or harmful to consumer interest.

Currently, if any service provider fails to comply with the reporting requirement, they are liable to pay ₹5,000 for every day of delay, up to a maximum of ₹2 lakh.

According to the regulator, a new system of graded, structured and enhanced penalties based on the extent the violation – will ensure companies follow the rules while promoting fairness and accountability.

“The proposed amendments contain provisions for imposing the financial disincentives in a graded manner to ensure compliance with regulatory provisions, revision in [the fine amount], prescribing a ceiling on the total [penalty] and imposition of interest on delayed/non-payments of [penalties],” Trai said in a draft to amend the telecommunication tariff order 2025 and reporting system regulations.

Stakeholders can share their comments on the draft amendments by 31 October.

Trai said it also reserves the right to not impose a fine, or impose a smaller one, in cases where it finds merit in the service provider’s reasons. But if a service provider doesn’t pay the penalty on time, it will have to pay interest on the unpaid amount.

The interest rate will be 2% higher than the one-year marginal cost of lending rate (MCLR) set by State Bank of India (SBI) at the start of the financial year in which the payment was due, Trai said. This will ensure accountability and discourage any deliberate postponement of payments, the regulator added.