Dialling a wrong number

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Published: April 22, 2016 6:36:24 AM

Attorney general Mukul Rohatgi on Thursday told the Supreme Court that the impact of the call drop penalty on mobile operators would be only R280 crore a year and not “thousands of crores” as claimed by the operators.

telcosThe AG was countering the Cellular Operators Association of India’s contention that the call drop penalty would lead to an outgo from them in the range of R10,000-54,000 crore, R10,000 crore if 10% of subscribers seek compensation and R54,000 crore if 50% of the subscribers are paid. (PTI)

Attorney general Mukul Rohatgi on Thursday told the Supreme Court that the impact of the call drop penalty on mobile operators would be only R280 crore a year and not “thousands of crores” as claimed by the operators. Going by the AG’s calculation, only 0.06% of calls drop, which is very much within the 2% norm prescribed by the Telecom Regulatory Authority of India. Roughly around 4.5 lakh crore of calls are made in a year (GSM + CDMA). If the outgo as fine is R280 crore a year by operators, that means that with R1 penalty for a drop, 280 crore calls drop in a year. This is 0.06% of the overall calls made. The quality of service norms allow call drops to be in the range of 2% so the operators are well within the norm, going by this calculation.

The AG was countering the Cellular Operators Association of India’s contention that the call drop penalty would lead to an outgo from them in the range of R10,000-54,000 crore, R10,000 crore if 10% of subscribers seek compensation and R54,000 crore if 50% of the subscribers are paid.

call

The AG told the SC that operators had raised infra spend by only 4% between 2010 and 2015 though their revenues had risen 48% and the subscriber base 61%. Data sourced from telcos tell a different story.

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