Lok Sabha Question No. 383 (UNSTARRED), answered on 2015-07-22
Subject: Violation of Regulations by TelecomOperators
Ministry: COMMUNICATIONS AND INFORMATION TECHNOLOGY
Asked by: ARVIND GANPAT SAWANT, BHAVANA GAWALI (PATIL)

**GOVERNMENT OF INDIA**

**MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY**

**DEPARTMENT OF TELECOMMUNICATIONS**

**LOK SABHA**

**UNSTARRED QUESTION NO.383**

**TO BE ANSWERED ON 22** **ND** **JULY, 2015**

**VIOLATION OF REGULATIONS BY TELECOM OPERATORS**

**†383.	SHRI ARVIND SAWANT:**

**SHRIMATI BHAVANA PUNDALIK GAWALI PATIL:**

Will the Minister of COMMUNICATIONS AND INFORMATION TECHNOLOGY be pleased to state:

(a) 	whether it has come to the notice of the Government that some telecom operators are not following rules and  regulations as laid down by the Telecom Regulatory Authority of India (TRAI);

(b) 	if so, the details thereof including the names of such operators;

(c) 	Whether the Government has taken any action against these telecom operators and imposed any penalty on them for violation of regulations; and

(d) 	if so, the details thereof and the amount penalties recovered from them as financial incentive operator-wise?

**ANSWER**

**THE MINISTER OF COMMUNICATIONS AND INFORMATION TECHNOLOGY**

**(SHRI RAVI SHANKAR PRASAD)**

1. to (d) Telecom Regulatory Authority of India (TRAI) has imposed financial disincentive on various telecom service providers for violation of rules and regulations. The financial disincentive imposed on telecom service providers under various regulations and orders are detailed below:

1. The Telecommunication Tariff Order, 1999 (TTO, 1999) provides that all tariffs are to be reported to TRAI within seven working days from the date of implementation. It also provides for levy of financial disincentives on service providers @ Rs.5,000/- per day for each day of delay subject to a maximum of Rupees Two Lacs.  The TTO, 1999 also provides for levy of financial disincentives upon telecom service providers in case they have collected excess charges in violation of the provisions of tariff orders. Details of financial disincentives levied upon telecom service providers are enclosed as **Annexure - I.**

1. ‘The Reporting System on Accounting Separation Regulations, 2012 (ASR 2012)  dated 15 th October 2012, prescribes for imposing financial disincentive on the service providers for non-submission/delay in submission of reports or furnishing false/incorrect information in the reports under ASR 2012. It provides for levy of an amount not exceeding Rs. 5,00,000/-  by way of financial disincentive, and, in case the default continues for more than 15 days, additional amount not exceeding Rs. 50,000/- for every day after 15 days during which the default continues, as the Authority may, by order, direct. Details of financial disincentive levied upon telecom service providers by TRAI for non-submission /delay in submission of reports or furnishing false/incorrect information in the reports under ASR 2012 are enclosed as **Annexure–II.**

1. After implementation of the Mobile Number Portability (MNP) in January 2011, TRAI had received a number of complaints wherein the subscribers had reported that their porting requests were rejected by the donor operators on various grounds.  On examination, it was noticed that in many cases rejection of porting requests of MNP the subscribers were not in accordance with the provisions of the regulations. Accordingly, directions were issued to concerned service providers to ensure compliance of Mobile Number Portability regulations, so that MNP process is smooth and convenient to the subscribers.  In addition, show cause notices were also issued against those service providers who had contravened the Mobile Number Portability regulations.   Further, TRAI issued  the ‘Telecommunication Mobile Number Portability (Fourth Amendment) Regulations, 2012’ dated 19 th September, 2012 providing financial disincentives for unjustified rejection of porting request and for violation of timelines specified in the regulations. As per the provision of these regulations, Financial Disincentives (FD) that have been levied on private service providers and the detail thereof are enclosed as **Annexure-III.**

1. Further, in accordance with the provisions contained in the ‘Standards of Quality of Service for Basic Telephone Service (Wireline) and Cellular Mobile Telephone Service Regulations, 2009’ and the ‘Quality of Service of Broadband Service Regulations, 2006’, regarding  non-compliance with the benchmarks for the various Quality of Service parameters, TRAI has imposed financial disincentives on Basic Service Providers (Wireline), Cellular Mobile Telephone Service Providers (2G & 3G) and Broadband service providers. So far an amount of Rs. 8,89,25,000/- (Rupees Eight crores, Eighty-nine lakhs and Twenty five thousand only) has been imposed on these service providers.  Against these the amount outstanding is Rs. 1,20,50,000/- (Rupees one crores, Twenty lakhs and Fifty thousand only). The outstanding is because of various representations from the Telecom Service Providers.

1. For non-compliance with the provisions contained in the ‘Telecom Commercial Communications Customer Preference Regulation, 2010 (TCCCPR, 2010)’, TRAI has imposed financial disincentives on 13 companies for Rs. 14,83,70,000/- (Rupees Fourteen crores, Eighty-three lakhs and Seventy thousand only).  The amount outstanding as of now is Rs. 2,26,48,000/- (Rupees Two crores, Twenty-six lakhs, and Forty-eight thousand only).  The outstanding is because of various representations from the Telecom Service Providers.

1. For non-compliance with the ‘Quality of Service (Code of Practice for Metering and Billing Accuracy) Regulations, 2006’, TRAI has imposed financial disincentive on one company for Rs. 23,95,311/- (Rupees Twenty-three lakhs, Ninety-five thousand, three hundred and eleven only).

1. TRAI has filed a complaint with the Chief Metropolitan Magistrate, Delhi against one service provider for imposition of penalty.

**Annexure-I**

| **Financial Disincentive imposed on telecom service providers for violation of TTO 1999 during the year 2013, 2014 & 2015.**   |                                      |                   |                   |                     |
|------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|-------------------|-------------------|---------------------|
| **Sl. No.**                                                                                                                        | **Name of Service Provider**         | **Date of Order** | **Date of DD/PO** | **Amount ( in Rs)** |
|                                                                                                                                    | **2013**                             |                   |                   |                     |
| 1                                                                                                                                  | M/s Tikona Digital Network Pvt. Ltd. | 5/17/2013         | 5/22/2013         | 25,000              |
| 2                                                                                                                                  | M/s Bharti Airtel Limited            | 7/16/2013         | 7/22/2013         | 20,430              |
| 3                                                                                                                                  | M/s Bharti Airtel Limited            | 7/22/2013         | 8/16/2013         | 10,000              |
| 4                                                                                                                                  | M/s Bharti Airtel Limited            | 8/29/2013         | 9/16/2013         | 10,000              |
| 5                                                                                                                                  | M/s Vodafone India Limited           | 9/6/2013          | 9/21/2013         | 15,000              |
| 5                                                                                                                                  | M/s Vodafone India Limited           | 9/6/2013          | 9/20/2013         | 5,000               |
| 6                                                                                                                                  | M/s Vodafone India Limited           | 10/4/2013         | 10/10/2013        | 10,000              |
| 6                                                                                                                                  | M/s Vodafone India Limited           | 10/4/2013         | 10/10/2013        | 5,000               |
| 7                                                                                                                                  | M/s Loop Mobile (India) Limited      | 10/14/2013        | 10/24/2013        | 20,000              |
| 8                                                                                                                                  | M/s Vodafone India Limited           | 11/29/2013        | 12/18/2013        | 15,000              |
| 9                                                                                                                                  | M/s Vodafone India Limited           | 11/29/2013        | 12/6/2013         | 65,000              |
| 10                                                                                                                                 | M/s Vodafone India Limited           | 11/29/2013        | 12/4/2013         | 5,000               |
| 11                                                                                                                                 | M/s Dishnet Wireline Limited         | 12/2/2013         | 12/19/2013        | 35,000              |
| 12                                                                                                                                 | M/s Dishnet Wireline Limited         | 12/2/2013         | 12/26/2013        | 40,000              |
| 13                                                                                                                                 | M/s Dishnet Wireline Limited         | 12/2/2013         | 12/26/2013        | 40,000              |
| 14                                                                                                                                 | M/s Dishnet Wireline Limited         | 12/2/2013         | 12/26/2013        | 40,000              |
| 15                                                                                                                                 | M/s Dishnet Wireline Limited         | 12/2/2013         | 12/31/2013        | 30,000              |
| 16                                                                                                                                 | M/s Aircel Limited                   | 12/2/2013         | 12/31/2013        | 45,000              |
|                                                                                                                                    | **2014**                             |                   |                   |                     |
| 17                                                                                                                                 | M/s Vodafone India Limited           | 1/16/2014         | 1/21/2014         | 30,000              |
| 18                                                                                                                                 | M/s Vodafone India Limited           | 1/16/2014         | 1/21/2014         | 95,000              |
| 19                                                                                                                                 | M/s Vodafone India Limited           | 1/16/2014         | 1/28/2014         | 5,000               |
| 20                                                                                                                                 | M/s Vodafone India Limited           | 1/16/2014         | 2/4/2014          | 5,000               |
| 21                                                                                                                                 | M/s Vodafone India Limited           | 1/16/2014         | 1/23/2014         | 5,000               |
| 22                                                                                                                                 | M/s Vodafone India Limited           | 1/16/2014         | 1/29/2014         | 15,000              |
| 23                                                                                                                                 | M/s Vodafone India Limited           | 1/16/2014         | 1/30/2014         | 15,000              |
| 24                                                                                                                                 | M/s Vodafone India Limited           | 1/16/2014         | 1/30/2014         | 10,000              |
|                                                                                                                                    |                                      |                   |                   |                     |
| 25                                                                                                                                 | M/s Vodafone India Limited           | 1/16/2014         | 1/23/2014         | 15,000              |
| 26                                                                                                                                 | M/s Vodafone India Limited           | 1/16/2014         | 1/21/2014         | 70,000              |
| 27                                                                                                                                 | M/s Vodafone India Limited           | 1/16/2014         | 1/20/2014         | 5,000               |
| 28                                                                                                                                 | M/s Bharti Airtel Limited            | 1/20/2014         | 1/31/2014         | 10,000              |
| 29                                                                                                                                 | M/s Reliance Communicatios Limited   | 2/13/2014         | 3/5/2014          | 5,752               |
| 30                                                                                                                                 | M/s Aircel Limited                   | 3/27/2014         | 5/1/2014          | 10,000              |
| 30                                                                                                                                 | M/s Aircel Limited                   | 3/27/2014         | 5/6/2014          | 5,000               |
| 31                                                                                                                                 | M/s Vodafone India Limited           | 3/26/2014         | 4/9/2014          | 95,000              |
| 32                                                                                                                                 | M/s Vodafone India Limited           | 3/26/2014         | 4/9/2014          | 15,000              |
| 33                                                                                                                                 | M/s Vodafone India Limited           | 3/26/2014         | 4/4/2014          | 20,000              |
| 34                                                                                                                                 | M/s Vodafone India Limited           | 3/26/2014         | 4/9/2014          | 45,000              |
| 35                                                                                                                                 | M/s Vodafone India Limited           | 3/26/2014         | 3/29/2014         | 5,000               |
| 36                                                                                                                                 | M/s Vodafone India Limited           | 3/26/2014         | 4/9/2014          | 10,000              |
| 37                                                                                                                                 | M/s Vodafone India Limited           | 3/26/2014         | 4/5/2014          | 5,000               |
| 38                                                                                                                                 | M/s Reliance Telecome Limited        | 3/5/2014          | 5/21/2014         | 2,00,000            |
| 39                                                                                                                                 | M/s Vodafone India Limited           | 4/30/2014         | 5/21/2014         | 60,000              |
| 40                                                                                                                                 | M/s Vodafone India Limited           | 7/22/2014         | 7/29/2014         | 5,000               |
| 41                                                                                                                                 | M/s D Vois Broadband Pvt. Ltd.       | 8/22/2014         | 9/10/2014         | 30,000              |
| 42                                                                                                                                 | M/s Vodafone India Ltd               | 9/3/2014          | 9/3/2014          | 5,000               |
| 43                                                                                                                                 | M/s Vodafone India Ltd               | 11/5/2014         | 11/18/2014        | 95,000              |
| 44                                                                                                                                 | M/s Vodafone India Ltd               | 11/20/2014        | 9/12/2014         | 15,000              |
| 45                                                                                                                                 | M/s Vodafone India Ltd               | 11/25/2014        | 12/12/2014        | 15,000              |
|                                                                                                                                    | **2015**                             |                   |                   |                     |
| 46                                                                                                                                 | M/s Vodafone India Ltd               | 3/26/2015         | 3/31/2015         | 30,000              |
| 47                                                                                                                                 | M/s  Vodafone India Ltd.             | 4/9/2015          | 4/24/2015         | 10,000              |
| 48                                                                                                                                 | M/s Bharti Airtel Limited            | 6/18/2015         | 7/3/2015          | 1,90,000            |

**Annexure-II**

| **Financial Disincentive imposed on telecom service providers for violation of Accounting Seperation Regulations, 2012 (in Rs.)**   |                         |                    |                   |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |
|-------------------------------------------------------------------------------------------------------------------------------------|-------------------------|--------------------|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **S.No.**                                                                                                                           | **Name of the Company** | **Amount Imposed** | **Date of Order** | **Amount Collected**                                                                                                                                                                                                                                                               | **Date of Receipt**                                                                                                                                                                                                                                                                |
|                                                                                                                                     |                         |                    |                   |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |
| **2014**                                                                                                                            |                         |                    |                   |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |
| 1                                                                                                                                   | Beam Telecom            | 600,000            | 5/1/2014          | 600,000                                                                                                                                                                                                                                                                            | 5/23/2014                                                                                                                                                                                                                                                                          |
| 2                                                                                                                                   | Sify                    | 155,000            | 1/24/2014         | 155,000                                                                                                                                                                                                                                                                            | 3/20/2014                                                                                                                                                                                                                                                                          |
| **2013**                                                                                                                            |                         |                    |                   |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |
| 3                                                                                                                                   | Tulip Telecom Ltd       | 4,300,000          | 7/24/2013         | Not yet received.                                                                                                                                                                                                                                                                  | Not yet received.                                                                                                                                                                                                                                                                  |
| 3                                                                                                                                   | Tulip Telecom Ltd       | 4,300,000          | 7/24/2013         | The financial disincentive of Rs. 43 lakhs was imposed on M/s Tulip for non-submission of ASRs for the year 2011-12. The order was not followed by M/s Tulip. A show cause notice was issued to M/s Tulip that legal action shall be initiated for non-compliance of TRAI’s order. | The financial disincentive of Rs. 43 lakhs was imposed on M/s Tulip for non-submission of ASRs for the year 2011-12. The order was not followed by M/s Tulip. A show cause notice was issued to M/s Tulip that legal action shall be initiated for non-compliance of TRAI’s order. |

**Annexure-III**

| **Financial disincentive levied on telecom service providers for violation of Mobile Number Portability (Fourth Amendment)  Regulations 2012 (in Rs.)**   |                       |                |                  |               |                  |              |                  |                                                                                                                       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|----------------|------------------|---------------|------------------|--------------|------------------|-----------------------------------------------------------------------------------------------------------------------|
| Sr. No.                                                                                                                                                   | Service Provider      | **2013-14**    |                  | **2014-15**   |                  | **2015-16**  |                  | Remarks                                                                                                               |
| Sr. No.                                                                                                                                                   | Service Provider      | F. D.  levied  | Amount Deposited | F. D. levied  | Amount Deposited | F. D. levied | Amount Deposited | Remarks                                                                                                               |
| 1                                                                                                                                                         | Aircel                | 15,069,000     | 15,069,000       | 718,000       | 718,000          |              |                  |                                                                                                                       |
| 2                                                                                                                                                         | Bharti Airtel         | 46,794,000     | 46,794,000       | 20,000        | 20,000           |              |                  |                                                                                                                       |
| 4                                                                                                                                                         | Idea Cellular         | 5,418,000      | 5,418,000        | 64,000        | 64,000           |              |                  |                                                                                                                       |
| 5                                                                                                                                                         | Loop Mobile           | 115,500        | 115,500          | 126,000       | 126,000          |              |                  |                                                                                                                       |
| 7                                                                                                                                                         | Quadrant Televentures | 25,000         | 25,000           | -             | -                |              |                  |                                                                                                                       |
| 8                                                                                                                                                         | Reliance Com.         | 8,500          | 8,500            | -             | -                | 50,000       | 50,000           |                                                                                                                       |
| 9                                                                                                                                                         | Reliance Telecom      | 43,000         | 43,000           | 4,000         | 4,000            |              |                  |                                                                                                                       |
| 10                                                                                                                                                        | SSTL-MTS              | 509,000        | 509,000          | -             | -                |              |                  |                                                                                                                       |
| 11                                                                                                                                                        | Tata                  | 1,933,500      | 1,933,500        | 400,000       | 400,000          |              |                  |                                                                                                                       |
| 12                                                                                                                                                        | Telewing (Uninor)     | 8,500          | 8,500            | 4,000         | 4,000            |              |                  |                                                                                                                       |
| 13                                                                                                                                                        | Videocon              | -              | -                | 4,000         | 4,000            |              |                  |                                                                                                                       |
| 14                                                                                                                                                        | Vodafone              | 10,492,000     | 10,492,000       | 1,796,000     | 1,736,000        |              |                  | Based on representation given by the service provider, the  Authority reexamined the issue and waived off Rs. 60000/- |
|                                                                                                                                                           | **Grand Total**       | **80,416,000** | **80,416,000**   | **3,136,000** | **3,076,000**    | **50,000**   | **50,000**       |                                                                                                                       |

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