Finally a win for Reliance Jio on Points of Interconnection (PoI) issue at least in the regulatory level. The Indian telecom regulator has now come down heavily on the top three telcos.
The Indian telecom watchdog, Telecom Regulatory Authority of India (TRAI) has recommended Department of Telecommunication (DOT) to slap a combined penalty of Rs 3,050 crore on India’s top three telecom operators. The fine is for violating the telecom licence norms by denying adequate interconnection points to Reliance Jio.
TRAI recommends strict action against the top three telcos Bharti Airtel, Vodafone India and Idea Cellular. It even recommended revocation of their permits for violation of licence norms. But as it may affect users the regulator suggested penalties instead.
The regulator pointed out that all three telcos violated their licence norms by not providing enough POI to new entrant Reliance Jio. This has resulted in poor quality of service to the users.
The telecom regulator has slapped the highest level of penalty for all three telcos. This includes fine of Rs 50 crore per telecom circle for each three telcos. So, Airtel and Vodafone India may get a penalty of Rs 1050 crore each for 21 telecom circles they operate. Whereas, Idea will be fined for Rs 950 crore for 12 telecom circle it operates.
TRAI recommendations
- TRAI suggest combined penalty of Rs 3050 crore.
- DoT to take the final decision regarding the penalty.
- Penalty against India’s top three telcos Airtel, Vodafone and Idea Cellular.
- Rs 50 crore fine per telecom circle for each three telcos.
From the start, Reliance Jio complained that India’s top telcos are not providing the sufficient point of interconnection for its customers. The result, Jio subscribers are not able to make voice calls to other networks and massive call failures between Jio and other networks.
Now the telecom regulator has stepped in to resolve the issue between Jio and other telcos. First, it was in the form of meetings, show cause notice and now in the form of heavy penalties.