Trai, telecom companies spar over data demand

While Trai argues that data such as details for subscribers using specific recharge packs sought recently is essential for transparency and effective regulation, telcos have raised concerns over competitive sensitivity and the administrative burden they face for meeting those data sharing requests. This has led to a growing standoff between the two, one of the two people said.

“Trai is the sector regulator and its various divisions require data from telecom operators on a regular basis. This data is essential for Trai to check quality of service, compliance by the operators, competitive behaviour and most importantly to serve consumer interest,” the second person said, adding that it is the obligation of telecom operators to share such information.

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Under Section 12 of the Trai Act, 1997, the regulator has the right to call upon any service provider at any time to provide information or explanation relating to its affairs. The telecom operators, however, have raised concerns over this practice by Trai, especially on the diversity and increased cases of such requests by the regulator.

“The current operational framework requesting various data/reports by various divisions of Trai has raised significant procedural and business-related concerns that warrant immediate action of the authority,” the Cellular Operators Association of India (COAI) said in a letter dated 10 February to Trai secretary Atul Kumar Chaudhary.

Minthas seen a copy of the letter. COAI represents major telecom operators such as Bharti Airtel, Reliance Jio and Vodafone Idea. Queries emailed to COAI and Trai on Wednesday morning did not elicit any response.

COAI mentions operators’ concerns

While COAI said the operators aim to support the regulatory process in the best possible manner, it said Trai should avoid asking for “commercially sensitive” information. “In certain cases, the data, information and presentations have been solicited with very short response timelines—which presents substantial operational challenges for TSPs (telecom service providers),” COAI said, adding that such short timelines put risk of either non-compliance to timelines or risk of information being submitted without adequate checks and balances.

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“Yes, the telecom operators can seek time to provide information, but they should not suggest Trai to avoid making requests for business-sensitive information,” said Satya N. Gupta, former principal advisor at Trai.

According to Gupta, Trai can request any information. If the telecom operator thinks the information sought is business sensitive, they can request that Trai keep it confidential and not share it with others.

In a five-point suggestion to Trai for seeking data, the telecom association said the regulator should do an impartial analysis to check for commercial sensitivity of the data before asking the telecom operators. “Further, no data should be sought that is beyond the scope of the authority’s powers and functions and pertains to other competent authorities like LEAs (law enforcement agencies),” COAI said.

Besides, the association has asked for adequate time to comply with certain data requests.

“Failure to comply (with Trai’s directions) may result in Trai issuing show-cause notices (to the operators), initiating enforcement actions or recommending penal measures to the Department of Telecommunications, which may include financial penalties or action under the relevant license conditions,” said Sukrit Kapoor, partner at King Stubb & Kasiva, Advocates and Attorneys.

Operators’ duties

“While operators may raise concerns about commercially sensitive data, they cannot unilaterally refuse disclosure. However, if an operator believes that Trai’s request is excessive, arbitrary, or outside the scope of its powers, it may approach the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) under Section 14 of the Trai Act to seek relief,” Kapoor added.

Lately, there have been multiple disputes between the regulator and the telecom operators. Trai recently imposed a ₹141 crore financial disincentive on the operators due to their failure to curb spam. After operators approached the telecom tribunal, the penalty order was stayed.

“The next hearing of the case is on 25 July. Trai might seek an early hearing in the matter,” said an official on the condition of anonymity.

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In February, the telecom operators also criticized Trai’s new rules to curb spam calls and messages, citing that the authority has substantially increased the penalty imposed on the TSPs for not curbing spam. According to operators, Trai has left over-the-top (OTT) communication apps like WhatsApp and telemarketers outside its regulatory framework.

The ministry of electronics and information technology (MeitY) will engage with stakeholders to tackle spam over OTT platforms, according to a Trai release on 25 April. The regulator is currently deliberating the contours of bringing telemarketers under the regulatory ambit,the official cited above added.

Last year, Reliance Jio argued that Trai should revise the consultation paper on satellite spectrum pricing. The telecom operator said the Trai consultation overlooked issues related to a level playing field between telecom operators and satellite companies as it did not consider the spectrum auction method for satellite internet services. Trai, however, dismissed Jio’s request, citing that the Telecom Act already paved the way for administrative (non-auction) allocation of satellite spectrum.