NewKerala.com

TRAI's New Telecom Rules: Why Graded Penalties Could Transform the Sector

TRAI has released draft amendments to strengthen telecom sector compliance. The proposals introduce graded financial penalties with revised ceiling amounts. Service providers will get representation opportunities before penalties are imposed. Stakeholders can submit comments on these changes until October 31, 2025.

Key Points: TRAI Draft Amendments to Telecom Tariff and Accounting Rules

  • TRAI introduces graded financial penalties for telecom regulatory compliance
  • Revised ceiling amounts proposed for total financial disincentives
  • Interest charges added for delayed or non-payment of penalties
  • Service providers get reasonable representation opportunity before penalties
  • Public consultation open until October 31, 2025 for stakeholder feedback
2 min read

TRAI issues draft amendments to Telecommunication Tariff Order and Accounting Separation Regulations

TRAI proposes graded financial penalties, revised ceilings, and interest charges for telecom compliance failures. Public consultation open until October 31, 2025.

"The Authority reserves the right not to impose any financial disincentive, or to impose a lower amount... where it finds merit in the reasons furnished by the service provider - TRAI Draft Amendment"

New Delhi October 16

The Telecom Regulatory Authority of India (TRAI) on Thursday released draft amendments to the Telecommunication Tariff Order, 1999 and the Reporting System on Accounting Separation Regulations, 2016, aimed at strengthening compliance and ensuring transparency in the telecom sector.

The purpose of the Regulation is to ensure that telecom service providers report to TRAI on a consistent and accurate basis.

The draft notifications include the Telecommunication Tariff (Seventy Second Amendment) Order, 2025 and the Reporting System on Accounting Separation (Amendment) Regulations, 2025.

TRAI said the proposed changes introduce provisions for imposing financial disincentives in a graded manner to ensure regulatory compliance. The amendments also propose revising the ceiling amount of such disincentives and introducing interest charges for delayed or non-payment of penalties.

"The proposed amendments contain provisions for imposing the financial disincentives (i) in a graded manner to ensure compliance with regulatory provisions; (ii) revision in amount of financial disincentive prescribing a ceiling on the total financial disincentive amount; (iii) imposition of interest on delayed/non-payments of financial disincentives." says TRAI statement

The proposed amendment says that TRAI will not issue any financial disincentive without giving reasonable opportunity of representation to the service provider. "No order for payment of any amount by way of financial disincentive under this regulation shall be made by the Authority, unless the service provider has been given a reasonable opportunity of representing against the contravention of the regulations observed by the Authority." noted the draft amendment.

The proposal also suggests that TRAI reserves the right of not imposing any penalty or financial disincentive under this regulation "The Authority reserves the right not to impose any financial disincentive, or to impose a lower amount of financial disincentive than the amount payable under the provisions of this regulation, where it finds merit in the reasons furnished by the service provider or in the interest of regulatory compliance." the proposal suggests.

The draft amendments have been uploaded on TRAI's website www.trai.gov.in for public consultation and stakeholders responses. Stakeholders have been invited to submit their written comments by October 31, 2025, to, TRAI, via email at fa@trai.gov.in

- ANI

Share this article:

Reader Comments

P
Priya S
Hope this leads to better service quality. My broadband connection has frequent disruptions and customer care gives vague responses. Transparency is much needed in telecom sector.
D
David E
While I appreciate the intention, I'm concerned about implementation. Regulatory bodies often create more bureaucracy. Hope this doesn't lead to increased costs for consumers eventually.
A
Ananya R
The right to representation before penalty is important. Many small ISPs might get unfairly targeted otherwise. Balanced approach by TRAI 👏
S
Siddharth J
Telecom companies have been taking customers for granted for too long. Hidden charges, sudden plan changes, poor network - hope these amendments bring some accountability. Jai Hind! 🇮🇳
K
Kavya N
Interest charges on delayed penalties is a smart move. Will ensure telecom companies don't drag their feet in paying fines. Good consumer protection measure!

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50