Lok Sabha Question No. 5105 (UNSTARRED), answered on 2017-04-05
Subject: Issue of Interconnection
Ministry: COMMUNICATIONS
Asked by: BALASUBRAMANIAM SENGUTTUVAN, V. SATHYABAMA

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA UNSTARRED QUESTION NO.5105 TO BE ANSWERED ON 5 TH   APRIL, 2017

## ISSUE OF INTERCONNECTION

5105. SHRI B. SENGUTTUVAN: SHRIMATI V. SATHYA BAMA:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether  some  of  the  Telecom  Service  Providers  (TSPs)  are  allegedly  denying  the interconnection to a new TSP in the country and if so, the details thereof;
- (b) whether the Telecom Regulatory Authority  of India (TRAI) has reportedly slapped a combined  penalty  of  Rs.3,050  crore  on  the  erring  TSPs  for  violating  licence  norms  by denying adequate interconnection points to the new TSP;
- (c) if  so,  the  details  thereof  including  the  amount  of  penalties  imposed  on  each  of  the erring TSPs and if not, the reasons therefor;
- (d) whether  the  Government  has  constituted  any  committee  to  look  into  the  TRAI's aforementioned decision; and
- (e) if so, the details and the major recommendations thereof?

## ANSWER

## THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)

(a) to (e) A  new  Telecom  Service  Provider  (TSP)  had  represented  to  the  Telecom Regulatory Authority of India (TRAI) as well as Department of Telecommunications (DoT) on the issue of delay/ denial of adequate Point of Interconnection (POI) by some of the existing TSPs, which is leading to congestion, call failures in it's network and is severely hampering their  services  and  requested  to  direct  the  concerned  TSPs  to  provide  requisite  number  of additional POIs to remove congestion.

The  TRAI  in  its  recommendation  dated  21.10.2016  has  concluded  that  M/s  Bharti Airtel  Limited,  M/s  Idea  Cellular  Limited  and  M/s  Vodafone  India  Limited  are  in  noncompliance of the terms and conditions of the license, under Section of 11(1)(a)(iii) of the TRAI Act, 1997 and  therefore, recommended a penal action of Rs. 50 crore per LSA against them where POI congestion exceeded the allowable limit of 0.5%.

Since,  the  issue  of  imposition  of  financial  penalty  was  kept  in  abeyance  due  to judgement & order dated 08.01.2016 of Hon'ble  High Court of Tripura in the matter of M/s Dishnet Wireless Ltd. Vs Union of India Writ Petition No. 422 of 2012, wherein the financial penalty clause of the License Agreement was held to be opposed to the public policy, ultra vires and against statutory provisions, DoT sought opinion of Learned Attorney General on the  issue  of  powers  to  impose  financial  penalty  on  various  Telecom  Service  Providers  for violation  of  terms  and  conditions  of  license  agreement  pending  the  review  petition  dated 16.03.2016 before the High Court Division Bench.

Subsequently,  Division  Bench  of  Hon'ble  High  Court  of  Tripura  has  pronounced  its judgement and order dated 15.03.2017 in favour of Union of India. With the pronouncement of  the  said  judgement, the powers of DoT to impose financial penalty on various Telecom Service  Providers  for  violation  of  terms  and  conditions  of  license  agreement  stands reinstated.

The department had constituted a committee to examine the TRAI's aforementioned recommendations.  The  Committee  recommended  that  the  said  recommendations  of  TRAI may be referred back to TRAI for providing clarifications and reconsidered recommendations on  account  of various clarifications required as  per  comments/  observations  of  the Committee before deciding further action by the Department.

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