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Last Updated : May 11, 2016 10:11 AM IST | Source: CNBC-TV18

SC to pronounce verdict in call drop penalty matter today

The Supreme Court today is likely to give its judgment on the highly contested issue of levying call drop penalty on telecom players.

In a bid to put the highly debated issue to rest, the Supreme Court today is likely to give its judgment on the telecom companies' plea against the Delhi High Court order making it mandatory for cellular operators to compensate for call drops.

The government and the Telecom Regulatory Authority of India (TRAI) will stick to their positions to enforce penalty as designed earlier. The government's contention is clear in saying that it has statutory provisions in place to allow call drop penalty.

As far as tower infrastructure is concerned, the TRAI is of the view that not enough investments have not been made, which has lowered the quality of calls.

The telecom companies, on the other hand, have argued that there is no provision that allows the TRAI to levy a huge burden of call drops penalty, which may further increase the stress in the sector.

Furthermore, the telecos say the investments made are in line with global players and some of the factors leading to call drops like spectrum availability and sealing of towers are beyond the industry players' control.

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First Published on May 11, 2016 08:40 am
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