Trai goes for call drop penalty, telcos see technical challenge ahead

Call drop threshold fixed with mobile companies being asked to file regular report

taru

Taru Bhatia | October 16, 2015 | New Delhi


#airtel   #idea cellular   #mobile   #cell tower   #trai   #call drop  

Holding telecom operators responsible for poor service quality, TRAI has today issued ninth amendment to the telecom consumers’ protection regulations, 2012, mandating the TSPs to provide compensation to their consumers for call drops.   

The compensation process will be effective from January 2016.   

“Call drop represents the service provider’s inability to maintain a call once it has been correctly established i.e. calls dropped or interrupted prior to their normal completion by the user, the cause of the early termination being within the service provider’s network,” said the regulator in the notice.

Reacting to the notice, Rajan Matthew, director, cellular operators association of India, said, “We are very disappointed with the ruling. We do not believe that it will address the problem of call drop. It will probably lead to increase customer dissatisfaction because implementation could be a significant challenge.”

Forming a mechanism to provide relief to consumers, the regulator has put mandatory steps for the TSPs to follow in case of call drop. “Credit the account of the calling consumer by one rupee; however such credit in the account of the calling consumer shall be limited to three dropped calls in a day,” said the notice.

It further said the TSPs have to send a message through SMS or USSD to the calling consumer within four hours of the occurrence of call drop and the details of amount credited in his account. For postpaid users, details of the credit in the next bill should be provided, the notice said.

As the issue call drop gained momentum in the past few months, several interactions were held  between the operators, regulator and telecom ministry. While the regulator and DoT blamed operators for not investing much in infrastructure, the operators stated lack of spectrum and difficulty in getting permits for installing cell towers as causes behind the problem.   

The regulatory body considers a benchmark rate of 2 percent and 3 percent (worst affected cell) as a call drop rate threshold for each telecom service provider in each circle and publishes data in the quality of service chapter of the sector's quarterly performance report.

Analysts said TRAI's missive would hit profitability of telecom companies as the maximum allowed compensation of Rs 90 per user per month was almost at the lower end of the monthly average revenue per user (ARPU) they make from voice services they offer.

CDMA telecom body AUSPI's Ashok Sud told a TV channel that measuring dropped calls will be a technical challenge and that there will always be some amount of dropped calls on a mobile network. "The regulator itself defines the limit of normal level of dropped calls at 2 percent. A charge should be levied only if the number of dropped calls crosses this threshold," he said. He said telcos will come together and discuss whether they want to contest the ruling.

Meanwhile, shares of Bharti Airtel and Idea Cellular dropped 2.3 percent and 2.6 percent after the news came out.

Comments

 

Other News

‘World’s biggest festival of democracy’ begins

The much-awaited General Elections of 2024, billed as the world’s biggest festival of democracy, began on Friday with Phase 1 of polling in 102 Parliamentary Constituencies (the highest among all seven phases) in 21 States/ UTs and 92 Assembly Constituencies in the State Assembly Elections in Arunach

A sustainability warrior’s heartfelt stories of life’s fleeting moments

Fit In, Stand Out, Walk: Stories from a Pushed Away Hill By Shailini Sheth Amin Notion Press, Rs 399

What EU’s AI Act means for the world

The recent European Union (EU) policy on artificial intelligence (AI) will be a game-changer and likely to become the de-facto standard not only for the conduct of businesses but also for the way consumers think about AI tools. Governments across the globe have been grappling with the rapid rise of AI tool

Indian Railways celebrates 171 years of its pioneering journey

The Indian Railways is celebrating 171 glorious years of its existence. Going back in time, the first train in India (and Asia) ran between Mumbai and Thane on April 16, 1853. It was flagged off from Boribunder (where CSMT stands today). As the years passed, the Great Indian Peninsula Railway which ran the

Vasudhaiva Kutumbakam: How to connect businesses with people

7 Chakras of Management: Wisdom from Indic Scriptures By Ashutosh Garg Rupa Publications, 282 pages, Rs 595

ECI walks extra mile to reach out to elderly, PwD voters

In a path-breaking initiative, the Election Commission of India (ECI), for the first time in a Lok Sabha Election, has provided the facility of home voting for the elderly and Persons with Disabilities in the 2024 Lok Sabha elections. Voters above 85 years of age and Persons with Disabilities (PwDs) with 4

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter