Pgp1 Labreport Secd Arijit Das

TRAI PGP -1 , 2008-2009 Course Name : Legal Aspects of Business Course Instructors : Prof. Lalitha Sreenath & Prof. M.R. Sreenath

By: Arijit Das Roll No : 06, Section –D PGP -1, 2008-2010 9 July,2008 th

Date of submission :

History of Telecommunicatons in India 

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Telecommunications were first introduced in India near Calcutta in 1851, by the then British Government. 5 years after Graham Bell invented Telephone, British Govt. introduced telephone services in India. After independence, till the 1980s, during the state led planned economic policies the government controlled all aspects of telecommunications through the Department of Posts & Telegraph leading to a monopoly in the sector.

Things started changing  Birth 

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of DoT :

Rajiv Gandhi initiated the liberalization of the telecom sector by de-monopolising the telecom equipmentmanufacturing sector in 1985. DoT licensed switching technology from various foreign firms. DoT created MTNL & BSNL primarily to have access to private funds. DoT tentatively started liberalizing, by opening the cellular services in July 1992.

However: The conditions imposed were onerous. The selection criteria were not announced before the bds were made. All this resulted in lengthy litigations.

National Telecom Policy 1994    

The national telecom policy, which was in the works since 1990 was finally announced in May 1994. Allowed entry of private players along with PSUs. Ushered in competition and hence furthered the liberalization process. Many foreign telecommunications companies participated in the bidding for the right to offer basic (wire line) telephony in India. The main attraction was the then widely used number of 250 million “middle class” potential customers, and the waiting list of more than 3 million.

However: 

Disillusioned by the government’s terrible handling of the telecom services deregulation, several international telecom giants had by 1999, pulled out of India.

Birth of TRAI  In

January 1996, a Presidential ordinance was passed to create TRAI.  TRAI was finally created by the passing of the Telecom Regulatory Authority India (TRAI) Act in February 1997.

Mission & Objectives of TRAI  

To ensure that the interests of consumers are protected and To nurture conditions for growth of telecommunications, broadcasting, and cable services in India .

Objectives of TRAI : •

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To provide a fair and transparent policy environment which promotes a level playing field and facilitates fair competition.   In pursuance of above objective TRAI has issued from time to time a large number of regulations, orders and directives to deal with issues coming before it.

Constituent members 

The TRAI Act of 1997 specifies that the Authority shall consist of a Chairperson and not more than two whole-time Members and not more than two parttime Members. The present members are : Sh. Nripendra Misra Chairperson Sh. A. K. Sawhney

Member

Sh. R. N. Prabhakar

Member

Prof. N. Balakrishnan Part-time Member Dr. Rajiv Kumar

Part-time Member

Restricted Powers of TRAI 

There were various discrepancies between the TRAI Act 1997 and the Indian Telegraph Act of 1885, creating jurisdictional conflicts between DoT and TRAI.

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The TRAI Act excluded issues covered by the Monopolies and Restrictive Trade Practices Commission (MRTPC) from its jurisdiction implying that the anti-competitive behaviour by the DoT cannot be referred to TRAI .

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While the TRAI Act gives the regulatory powers to resolve disputes between service providers, TRAI was not given jurisdiction over DoT, the largest telecom service operator in the country.

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Although the cabinet of ministers later extended TRAI’s powers over DoT, the jurisdiction granted was ambiguous because the regulator only had powers over DoT as an operator and not as a policy maker.

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The courts ruled in DoT’s favour when TRAI tried to block MTNL’s decision to nter cellular services with the blessing of its owner DoT in

Customer friendly measures  The

TRAI has since its inception has taken various measures to see to it that the consumer interests are protected.  It has done this through Tariffs orders, Directions and regulations.

Tariff Orders 

13th Amendment, dated 01.05.2001  The charges for lost/damaged SIM card should not exceed the cost to the service provider plus a mark-up.  There should be at least one pre-paid SIM card of less than Rs 300 and sufficient validity period.  The unused amount will be carried forward , if the subscriber renews subscription within the “ grace period”.

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30th Amendment, dated 16.01.2004 

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All services which do not affect “talk time value” including incoming voice calls / SMS shall continue to be available to the Pre-paid subscribers during the entire validity period even after the talk time value is exhausted.

31st Amendment, dated 07.07.2004 A tariff plan once made available to the tariff plans, shall be available to the subscriber for a minimum period of six months. The customer also has the choice to move to other tariff plans.

Some more……. 

43 rd Amendment , dated 21.03.2006  It aimed bringing transparency in the billing and metering processes of various telecom providers.  It aimed at improving the quality of services to the consumers. 44th Amendment, dated 24.01.2007  It aimed at reducing and thereby regulating the tariffs for roaming services.

Directions 

Direction No.411-5/98-FN dated 08.01.2001  “ Not deny Registration for provision of telephone connections to a prospective subscriber on any account until directed by the licensor in writing to so refuse”  “Keep the Waiting List of prospective subscribers shall be provided strictly as per the priority in this Waiting List. This Waiting List should be accessible to all the Wait Listed applicants.”

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Direction No.303-11/2003-TRAI (Eco) dated 16.01.2004  If there is an amount at the end of the validity period it will be carried over to the renewed card, if such renewal is done in a specified reasonable period.  The service providers are bound to provide information to their consumers regarding III. Validity period, IV. Grace period V. The fact that unused balance can be carried forward to the grace period

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Direction No.101-3/2003-MN (Pt.II) dated 03.03.2004 The subscriber cannot be offered voice mail services without his/her consent and cannot be charged for it.

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Some more …… 

Direction No.301-27/2005-Eco dated 27.06.2005  When the usage of the subscriber reaches the credit limit set for him/her, a notice should be given to the subscriber and a time limit given for making payment.  The credit limit set for a postpaid subscriber should be intimidated to him/her.

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Direction No.303-1/2004-Eco dated 08.07.2005  “the security deposit after adjustment of dues, if any, is required to be refunded to subscribers within a time frame of 60 (sixty) days. The service provider has also to pay an interest for any delay in making refund within the stipulated period.” 

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Direction No.305-8/2004-QoS dated 26.09.2005  it has been provided that the complete details of the tariff plans as well as the financial implications for various usage slabs should be included in the tariff brochures available at retail outlets.

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Direction No.301-49/2005-Eco dated 16.09.2005

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There are many rental plans such as “ Zero Rental” which gives the subscribers the false impression, such tariff plans should be done away with.

3G Services 

Presently TRAI is embroiled in a tussle with Dot with spectrum allocation for 3G services.

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While the DoT is in favour of direct entry of foreign players in it, to boost competition and ensure better services, however TRAI wants only existing players and prefers a FDI route for foreign players.

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The telecom industry is divided on the TRAI’s recommendations on 3G services. 

GSM players feel that the high entry-fee of more than Rs. 1000 Crore is a disincentive for them, specially for rural market penetration and is unfair.

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The CDMA players feel that the recommendations are fair to all and is happy with it.

Thank You