Call drops issue: No relief to telecom companies

The Supreme Court on Friday refused to pass any interim order at this stage in a bunch of appeals filed by cellular operator associations challenging Delhi High Court order upholding Trai’s decision, making it mandatory for them to compensate subscribers for call drops from January 1, 2016.

The Cellular Operators Association of India (COAI) and the Association of Unified Service Provider of India prayed for an interim stay of Trai’s decision but a Bench of Justices Kurian Joseph and Rohinton Nariman told the counsel that the appeals would be disposed of at the earliest and fixed March 10 as the date of hearing. Even as senior counsel Kapil Sibal stressed for an interim stay, the bench observed that “prima facie we find nothing ultra vires” in the High Court order warranting interim order at this stage. The Bench told the counsel that call drop was “because of your default and you must pay”.

Appearing for the government, Attorney-General Mukul Rohatgi opposed grant of interim relief saying “there should not be interim order. I have succeeded in the High Court. This is in consumer interest.” The bench accepted the request of Mr. Sibal that there should be no coercive steps for recovery of call drop charges.

Recently the Delhi High Court had upheld the call-drop penalty imposed on cellular operators by telecom regulator Trai in the interest of the consumers. It said there was no dispute that the penalty was meant for ensuring quality of services which was the responsibility of Trai. Notified on October 16, 2015, the penalty was to be paid from January 1, 2016. Under this, the telecom service providers would have to compensate the consumer for a maximum of three call drops a day at Rs 1 for each. The HC held that since the compensation was limited to three call drops a day per consumer, the petitioners’ contention that 100 per cent performance was demanded under the regulation “is factually incorrect and without any basis.”

Assailing this order the appellants said “factors leading to call drops are not always within the control of the operator and / or many a times outside the network. There are several call drop scenarios which are beyond the service provider’s control / network.