Dismayed by fine on telcos, COAI to take handsoff approach

Cellular operators’ industry body COAI has expressed disappointment over the ₹3,050 crore penalty recommended by Trai on incumbent operators Airtel, Vodafone and Idea on charges of denying interconnectivity to newcomer Reliance Jio.

But the association, which had at one point led cellular operators from the front in their battle with Rel Jio over call connectivity, said it would not get involved as interconnect was a matter involving individual operators and bilateral agreements.

“We are disappointed when large penalties are recommended or imposed on the industry...it is not a trivial amount...it seems that Trai has imposed maximum penalty of ₹50 crore (per circle),” COAI director general Rajan Mathews told PTI.

Department of Telecom (DoT) will decide whether the amount is appropriate or not, he said.

“The matter is between individual operators and Trai. We were not privy to the showcause notice by Trai or subsequent responses. We were not involved ...it is bilateral...we will wait to see DOT’s response on the matter...DOT will have to review and decide,” he said.

Asked if the association will chalk out a future course of action to represent the stance of the incumbent telcos on the issue of interconnect and penalty, Mathews emphasised that operators will decide on how they want to respond.

The telecom regulator had on Friday suggested a penalty of about ₹1,050 crore each for Airtel and Vodafone, and ₹950 crore in the case of Idea Cellular.

Trai said it has found the trio to be non-compliant with licence conditions and service quality norms given the high rate of call failures and congestion at interconnect points for RJio.