TELCOS RUNNING CARTEL, MUST PAY PENALTY FOR CALL DROPS: TRAI
NEW DELHI: The country’s telecom watchdog defended on Thursday its decision to impose call drop charges on telcos, accusing them of running a cartel and investing barely 4% of their income in infrastructure upgrade despite earning Rs250 crore a day.
The Telecom Regulatory Authority of India ( Trai) had directed private mobile phone operators to credit a rupee to a user’s account for every call drop from January 1 this year. The move is aimed at curbing the nuisance of call drops or snapped cell phone conversations because of technical and network glitches, which hurts millions of phone users.
The Trai alleged that the companies have formed a cartel to deny good service to consumers, though they earn Rs 1 lakh crore a year from voice calls.
“The daily revenue earned by these companies is Rs 250 crore. Between 2010 and 2015, the subscriber base grew from 60 crore to 100 crore, which means a jump of 61%,” attorney general Mukul Rohatgi, who appeared for the telecom regulator, told the Supreme Court. CONTINUED ON P9