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.

Advertisement

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

"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.

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. These OnePlus Smartphones Could Receive the ColorOS 17 Update in India
  2. OnePlus N6x Design, Colour Options Teased Ahead of India Launch
  3. Here's How Much the Redmi Note 17 Could Cost in India
  4. TSMC to Raise Chip Prices by 10 Percent Next Year: Report
  5. Samsung Galaxy Unpacked 2026 LIVE: What Samsung Might Launch Today
  1. Redmi Note 17 Price in India and Key Specifications Tipped Ahead of Launch
  2. TSMC Plans Up to 10 Percent Chip Price Hike Amid Soaring Production Costs: Report
  3. Samsung to Reportedly Showcase Smart Glasses With Snapdragon AR1 Gen 1 Chip at Galaxy Unpacked
  4. Vivo S2 India Launch Reportedly On the Horizon as Promotional Poster Leaks
  5. Samsung Galaxy Unpacked Event Today: How to Watch Galaxy Z Fold 8 Ultra, Galaxy Z Flip 8, Galaxy Watch 9 Launch Live
  6. Offline UPI Payments With NFC Support Could Launch in India Soon
  7. Samsung Galaxy S26 Ultra's Privacy Display Feature Gets a Major Upgrade in One UI 9 Beta
  8. OnePlus N6x Design, Colour Options Teased in New Marketing Material Ahead of Imminent Launch in India
  9. OnePlus 11, Nord 4, and Newer Models Tipped to Receive the Android 17-Based ColorOS 17 Update in India
  10. Redmi Note 17 Pro Max Appears on Thailand's NBTC Certification Database, Might Launch Soon
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.