Govt mulls ordinance route to amend TRAI Act

NEW DELHI, JANUARY 11: The Government may consider using the ordinance route for amending the Telecom Regulatory Authority of India (TRAI)...

NEW DELHI, JANUARY 11: The Government may consider using the ordinance route for amending the Telecom Regulatory Authority of India (TRAI) Act. Telecom companies have made written submissions to the sub-group on amending the TRAI Act asking them to give adjudicatory powers to the TRAI even in cases where disputes are between the Government (read Department of Telecommunications or DoT) and private operators. The industry has also demanded that the TRAI be given powers to enforce the awards announced by them.

Private operators have also demanded that the TRAI be endowed with powers to regulate anti-competitive practices of private companies as well as the existing monopolies like the MTNL and DoT. They have also submitted that it should be mandatory for the Government to seek TRAI’s recommendations before issuing or revoking licences of private companies.

The industry has also sought that the TRAI be given unfettered powers to decide tariffs of all telecom services as well as terms of interconnectionincluding the commercial terms for it.

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The recommendation to which DoT is vehemently opposed to is the idea of adjudicatory powers being vested with the TRAI. The arguments that DoT has used against this include fears that the TRAI would use these powers to direct various wings of the Government like security agencies and ministries like Defence and Information and Broadcasting which do not fall within the purview of the TRAI.

DoT, in its own submissions to the sub-group, had stated that the TRAI may prevent the exercise of licence conditions by way of resistance to revoking of licences for non-fulfilment of conditions by licensees. DoT has also said that there may be instances when the TRAI may direct the Foreign Investment Promotion Board (FIPB) to allow entry of foreign companies.