DoT considering telecom operator penalty reforms ahead of next auction

Advertisement
By Press Trust of India | Updated: 18 November 2013 15:43 IST
The Department of Telecom wants to have a new and more rational approach to penalty norms for telecom operators before the commencement of next spectrum auction.

"We want to have five things before the commencement of auction. Of these five, unified licence and FDI rules are already in place. The rest are calibration on penalties, mergers and acquisitions (M&A) guidelines and definitely auction related processes," Telecom Secretary MF Farooqui told PTI.

Telecom Minister Kapil Sibal had earlier said that M&A guidelines would be announced after the EGoM's call on the matter. The Empowered Group of Ministers (EGoM), headed by Finance Minister P Chidambaram, is expected to decide on it in its meeting scheduled for November 22.

Farooqui said the DoT is working on rationalising penalty rules and the draft should be ready by this month-end.

Advertisement

"The five things will bring a sense of hope and growth back to the industry," he said.

Advertisement

The Telecom Secretary, however, did not share details of new penalty rules, but said the DoT is considering TRAI recommendations.

The Telecom Regulatory Authority of India (TRAI) in April last year had recommended classifying penalty in two categories minor and major. It had suggested imposition of a maximum penalty of up to Rs. 25 lakh in case of minor violation and up to Rs. 10 crore for a major violation.

Advertisement

The DoT has come under criticism from the industry for imposing maximum penalties of Rs. 50 crore even for minor violations.

Sibal had said that when DoT imposes high penalty, telecom operators usually contest it before courts. This leads to delays in realisation of amounts.

Advertisement

Telecom players have raised the penalty issue in open house discussions held by the Telecom Ministry.

Industry estimates suggest that the DoT has imposed total penalties of Rs. 6,850 crore on telecom companies which include fines for minor violations like late submission of papers and absence of placards on mobile towers.

 

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Advertisement

Related Stories

Popular Mobile Brands
  1. Top OTT Releases of the Week (Sept 1 - Sept 7): Know What to Watch
  2. Flipkart Big Billion Days Sale Date Revealed, Will Compete With Amazon Sale
  3. Oppo Reno 14 FS 5G Launches in Select Global Markets With These Features
  4. Vivo X300 Pro Might Not Arrive With Faster Charging Support
  5. Samsung Galaxy S25 FE First Impressions
  6. Oppo Set to Release ColorOS 16 Based on Android 16 in October 2025
  7. Huawei Mate XTs Triple Folding Smartphone With Kirin 9020 Chipset Launched
  1. ISRO Tests Parachutes for Gaganyaan Crew Module in Key Rocket-Sled Trial
  2. India’s PRATUSH Computer Could Detect Signals From the Universe’s First Stars: Report
  3. NASA Tracks Newly Discovered Bus-Sized Asteroid as It Flies Past Earth
  4. Ashneer Grover’s Rise and Fall to Premiere on OTT Soon: All the Details
  5. Dyson PencilVac Unveiled Alongside 10 New Floor Cleaners, Air Purifiers and Hair Dryers at IFA 2025
  6. NASA's Hubble Captures Interstellar Comet 3I/ATLAS Ahead of Close Mars Flyby
  7. Raju Jeyamohan-Starrer Bun Butter Jam to Stream on OTT Soon: Know When, Where to Watch Online
  8. Kannappa Now Streaming Online: Know When and Where to Watch This Vishnu Manchu-Starrer Online
  9. NASA’s James Webb Space Telescope Spots Rare Quintet of Galaxies From the Early Universe
  10. Lunar Eclipse September 2025: Know Who Will Get to See the Blood Moon on September 7
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.