TRAI proposes steeper fines for delayed tariff filings by telecom operators

Stakeholders can submit comments on the draft amendments by 31 October.

The Telecom Regulatory Authority of India (Trai) plans to tighten rules for telecom operators and internet service providers that fail to report new plans or price changes on time.

A new draft order released on Thursday for public consultation proposes significantly higher penalties, starting at Rs 10,000 per day for the first week of delay and doubling to Rs 20,000 per day thereafter, up to a maximum of Rs 5 lakh. It also introduces a graded penalty structure where fines vary based on the severity and nature of the violation.

Trai has also proposed consolidating overlapping rules that currently allow different divisions of the regulator to impose separate fines. Additionally, it suggested charging interest on delayed penalty payments to ensure better compliance.

Under the existing Telecommunication Tariff (52nd Amendment) Order, dated 19 September 2012, telecom operators must report any new tariff plans or changes to existing ones within seven working days of implementation, a requirement known as the 'reporting requirement.' This allows Trai to review and intervene if a change is found to be anti-competitive, predatory, or against consumer interest.

At present, failure to comply with the reporting requirement attracts a fine of Rs 5,000 per day of delay, up to a maximum of Rs 2 lakh.

According to the regulator, the new system of graded, structured, and enhanced penalties based on the extent of the violation will promote fairness, accountability, and stricter adherence to reporting norms.

“The proposed amendments contain provisions for imposing financial disincentives in a graded manner to ensure compliance with regulatory provisions, revising the fine amount, prescribing a ceiling on the total penalty, and imposing interest on delayed or non-payments,” Trai said in its draft to amend the Telecommunication Tariff Order 2025 and reporting system regulations.

Stakeholders can submit comments on the draft amendments by 31 October.

Trai also said it reserves the right to waive or reduce fines in cases where the service provider provides valid justification. However, if a provider fails to pay the penalty on time, it will be required to pay interest on the overdue amount at a rate 2% higher than the one-year marginal cost of lending rate (MCLR) set by the State Bank of India (SBI) at the start of the financial year in which the payment was due. This, the regulator said, will ensure accountability and discourage deliberate payment delays.