The Telecom Regulatory Authority of India (TRAI) has released crucial draft amendments to the existing Telecommunication Tariff Order, 1999, and the Reporting System on Accounting Separation Regulations, 2016. These proposed changes are designed to significantly enhance regulatory compliance and transparency within the Indian telecom sector by ensuring that Telecom Service Providers (TSPs) submit consistent and accurate financial and operational data.
The two draft amendments are titled The Telecommunication Tariff (Seventy Second Amendment) Order, 2025 and The Reporting System on Accounting Separation (Amendment) Regulations, 2025. They focus on strengthening enforcement mechanisms through revised financial disincentives.
Graded Financial Disincentives and Revised Ceiling
The primary measure introduced is a system of graded financial disincentives to ensure that penalties are proportionate to the nature and duration of non-compliance.
- The amendments specify that financial disincentives will be imposed “in a graded manner to ensure compliance with regulatory provisions.”
- They also introduce a revised ceiling amount on the total financial disincentive a TSP can be liable for.
- This approach aims to encourage timely and accurate reporting, which is essential for effective regulatory oversight.
To further enforce financial discipline, TRAI has proposed measures regarding the payment of penalties.
- The draft includes the “imposition of interest on delayed/non-payments of financial disincentives.” This makes non-payment or delayed payment of penalties more costly for operators.
- Crucially, TRAI has confirmed that no financial disincentive will be levied without first granting the concerned telecom operator a “reasonable opportunity of representing against the contravention.”
- The framework also retains the regulator’s authority to exercise discretion, allowing TRAI to “not to impose any financial disincentive, or to impose a lower amount” where the service provider’s reasons have merit or it is in the interest of regulatory compliance.
The overall goal of these amendments, as per TRAI, is to ensure that TSPs report their data on a consistent and accurate basis, fostering a more accountable telecom environment.
The full draft amendments have been uploaded on TRAI’s official website, www.trai.gov.in, for public consultation. Stakeholders and industry participants are invited to submit their written comments and suggestions by October 31, 2025, via email to fa@trai.gov.in.
Key Highlights:
- Objective: TRAI released draft amendments to the 1999 Tariff Order and 2016 Accounting Separation Regulations to boost compliance and transparency in TSP financial and operational reporting.
- Key Enforcement Measures: The amendments introduce graded financial disincentives, revise the ceiling amount for penalties, and propose interest charges on delayed or non-payment of fines.
- Procedural Fairness: No penalty will be imposed without first giving the concerned telecom operator a reasonable opportunity to present its case, and TRAI retains the discretion to waive or reduce the disincentive.
- Consultation Period: The draft is open for public consultation on the TRAI website, with a deadline for comments set for October 31, 2025.