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This is an archive article published on January 12, 2016

In high court, telcos say regulator’s call-drop rule a ‘knee-jerk’ reaction

The Delhi High Court will now hear intervention pleas filed by various consumer organisations, which have sought harsher penalty against telecos on Tuesday.

Continuing with their stand on the penalty imposed by the Telecom Regulatory Authority of India (TRAI) on call drops, the telecom companies on Monday argued before the Delhi High Court that the charges were a “knee jerk” “populist reaction.”

Appearing before the bench of Chief Justice G Rohini and Justice Jayant Nath, senior advocates Abhishek Manu Singhvi and Harish Salve said that the regulation was introducing “absolute liability” against the operators which amounted to a “coercive taxation regime.”

Singhvi said that under the licensing regime, firms were allowed to have a call drop rate of 3 per cent, which was reduced to 2 per cent by Trai.

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He argued that the regulation was “creating a parallel penalty regime” as there was a “mutual contradiction” between the licensing agreement and the new regulation that sought to penalise the “very first call drop.”

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The two lawyers also argued that “spectrum interference” was a huge reason for call drops, especially in the border areas. “Even the Trai accepted that in Jammu the interference was so high that companies had difficulties launching services,” argued Singhvi. Salve also pointed out that the new regime “will not suddenly open up the spectrum to the companies.”

“It’s not that the municipal corporations will suddenly give us permission to set up towers or the DoT will release more spectrum. This policy will only needlessly penalise the telcos,” said Salve.

The Delhi High Court will now hear intervention pleas filed by various consumer organisations, which have sought harsher penalty against telecos on Tuesday.

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