No compensation for call drop, SC rules

TRAI had earlier directed mobile operators to pay Rs 1 compensation for each call drop to consumers

GN Bureau | May 11, 2016


#TRAI   #Call Drops   #Supreme Court   #Telecom Operators   #Telecom Industry  


Supreme Court on Wednesday ruled that telecom operators do not need to compensate its users on every call drop.

The apex court has ruled against Telecom Regulatory Authority of India (TRAI), which had directed mobile operators to pay Rs 1 compensation for each call drop to consumers. This order had come after the rate of call drops across the country had crossed the 2 percent – benchmark set up by the regulatory body.

The TRAI order was challenged by telecom industry in Delhi high court where they lost the argument. However, the operators moved the apex court.

The industry had argued that compensating the users will not address the problem of call drops. It felt that , compensating for every call drop was not fair as there are different reasons for the mobile call to get snapped in the middle of a conversation. One of the reasons, the industry said, was the arbitrary sealing of mobile towers by municipal authorities.

It also felt that call drop was due to technology transition that the department of telecommunication [DoT] had failed to handle properly.

TRAI, on the other hand, maintained that the call drop was because of poor investment by operators on infrastructure.

Details of the Supreme court judgement are yet to be made public

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