Telcos fear Trai role may get diluted in new regime

Telecom operators said on Wednesday that the Telecom Regulatory Authority of India (Trai)’s role as sector regulator may be reduced under the new telecom authorization regime.

Telcos worry Trai's role may be diluted in the new regime. (Image Source: Freepik)
Telcos worry Trai's role may be diluted in the new regime. (Image Source: Freepik)

The role of the Telecom Regulatory Authority of India (Trai) as the sector regulator is likely to get diluted once the new telecom authorisation regime kicks in, telecom operators said on Wednesday.

Their apprehension is on the grounds that the department of telecommunications (DoT) has said it may not consult Trai for any changes in the terms and conditions of the authorisation regime, which will replace the current licensing regime.

In the current licensing regime, telcos have a contractual agreement with the government which is legally binding. While the government has the power to carry out  amendments to the terms and conditions, the same can be challenged in a court of law.

However, under the authorisation regime, telcos say they would lose the power to challenge as the government will have the power to change any terms and conditions without prior consultation with the regulator.

Though the Trai has recommended that DoT must consult it before changing any terms and conditions under the authorisation regime, barring those which may be for reasons of security of the State, the DoT differs from this view.

The telecom operators maintain that the current contractual nature of the licensing regime must be retained to provide regulatory stability and encourage investments in the sector.

“It is noted with concern that the role of Trai may be diluted as it has been stated that with respect to minor or procedural amendments, the licensor (DoT) may not seek recommendations from the regulator,” said SP Kochhar, director general of Cellular Operators Association of India (COAI).

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This article was first uploaded on March six, twenty twenty-five, at zero minutes past four in the morning.
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