Telecom operators opposed to the latest Telecom Regulatory Authority of India (Trai) order on compensating consumers for call drops are planning to seek clarity on the issue.
The mobile phone operators will seek details from Trai mainly on implementation, refund mechanism and time frame provided to telecom companies to install equipment to enable them to execute the new system.
The operators also wanted to know what happens once they meet the 2 per cent call drop ration. Even after meeting the 2 per cent call drops, what is the fate of imposition of penalty whether it will stop or continue, said top executive from a telecom firm.
Associations related to telecom, including Cellular Operators Association of India (COAI) and Association of Unified Telecom Service Providers of India (AUSPI), are expected to approach Trai seeking clarification.
Earlier, COAI Director General Rajan Mathews had said telecom operators never hesitate to approach the appellate tribunal Telecom Disputes Settlement and Appellate (TDSAT) against the Trai’s decision.
As per the norms announced by Trai last week, mobile users will get a compensation of Re 1 for every dropped call from January 1, 2016. Telecom operators have cried foul saying the new rules can cost them nearly Rs 150 crore a day.
Terming the move difficult to implement, Bank of America Merill Lynch said it expects a hit of up to 5 per cent in the pre-tax profits for listed majors Bharti and Idea Cellular.
“We consider this regulation as hard to implement in the current form and expect telcos to contest this ruling. However, we think the worst case impact could be 4-5 per cent of EBITDA (earnings before interest, taxes, depreciation, and amortization) for Bharti/Idea,” the American brokerage said in a statement.