Telecom Regulatory Authority of India (TRAI): Origin, Structure, and Functions

PWOnlyIAS December 29, 2023 07:20 2904 0

The Telecom Regulatory Authority of India or TRAI is a regulatory body set up by the Indian government under section 3 of the Telecom Regulatory Authority of India Act, 1997.

Telecom Regulatory Authority of India (TRAI): Origin, Structure, and Functions

Provision: The Telecom Regulatory Authority of India or TRAI is a regulatory body set up by the Indian government under section 3 of the Telecom Regulatory Authority of India Act, 1997.

About Telecom Regulatory Authority of India (TRAI)

TRAI Full Form: Telecom Regulatory Authority of India
Mandate: The Telecom Regulatory Authority of India (TRAI) has the main role of regulating the telecommunication sector in India.
- It seeks to create and nurture conditions for growth of telecommunications in the country.
Setting Up: The Telecom Regulatory Authority of India was established in 1997 by an Act of Parliament to regulate telecom services and tariffs in India. Previously, regulation of telecom services and tariffs was carried out by the Central Government.
- The setting up of TRAI was intended to act as a harbinger for the growth of telecommunications in India and to make India have a leading role in the emerging global information society.
Objective: TRAI aims to provide a fair and transparent environment that promotes a level playing field and facilitates fair competition in the market.

Telecom Regulatory Authority of India (TRAI): Structure and Composition

Headquarters: The headquarters of the Telecom Regulatory Authority of India is situated in New Delhi.
Members: The Telecom Regulatory Authority of India consists of a chairperson and not more than two full-time members and not more than two part-time members.
Qualifications: Members must possess special knowledge of, or professional experience in telecom, industry, finance, accountancy, law, management, and consumer affairs.
- Senior or retired Government officers, who have served for at least three years as secretary/additional secretary to the Union or State Governments, can be appointed as members of TRAI.
Tenure: The Chairperson and other members of the Telecom Regulatory Authority of India shall hold their office for a term of three years or till the age of 65 years, whichever is earlier.
Chairperson and Vice-chairperson: The Chairperson exercises the powers of general superintendence. The vice-chairperson performs all the functions of the Chairperson in his/her absence.
Removal of Members: The Union Government has powers to remove any member of the TRAI in the following cases:
- He/she has been adjudged an insolvent;
- He/she has been convicted of an offense involving moral turpitude;
- He/she is physically or mentally incapable of being a member
- He/she has abused their position, making their continuance in office prejudicial to the public interest.
Decision-making: The decisions are taken based on the majority voting of the members present.
In case of an equality of votes, the Chairperson exercises a casting vote.

Telecom Regulatory Authority of India (TRAI): Powers

Furnishing of Details: The Telecom Regulatory Authority of India can ask any service provider to furnish information in writing regarding certain issues relating to its affairs.
Inspection of Books: TRAI can ask any of its officers or employees to inspect the books of accounts or other documents of any service provider.
Inquiry on any Issue: TRAI may appoint one or more persons to conduct an inquiry in relation to the affairs of any service provider.
Directive for Proper Functioning: TRAI can give any directives to service providers that may be necessary for proper functioning.

Telecom Regulatory Authority of India (TRAI): Functions of TRAI

Protect Consumer Interests: The Telecom Regulatory Authority of India protects consumer interests by monitoring the quality of services, inspecting equipment used in services, and making recommendations about the same.
License to new Service Provider: TRAI can recommend the introduction of new service providers and the terms and conditions of the license to a service provider in question.
Advice on Telecom Policies: The Telecom Regulatory Authority of India advises the government on any matter related to the telecom industry, thereby ensuring that universal service obligations are complied with.
Compatibility between Service Providers: TRAI not only ensures technical compatibility between service providers; it also regulates revenue-sharing arrangements.
Monitor Telecom Licenses: The Telecom Regulatory Authority of India monitors the functioning of telecom regulators and revaluates license agreements in case of failure to comply.
Facilitate Competition: TRAI facilitates competition between service providers and promotes efficiency in operations for the growth of the telecom sector in the country.
Protecting Agreements: Taking note of interconnect agreements and using them for inspection and settling disputes among the service providers.
Miscellaneous Functions: The Telecom Regulatory Authority of India also needs to perform any administration and financial function as may be entrusted to it by the Central Government.

Telecom Regulatory Authority of India (TRAI): Criticism

Tweaking Rules: Telecom Regulatory Authority of India was accused of tweaking certain parameters and rules to allow some cellular operators to capture the telecom market in India.
Unreasonable Conditions: Some of the rules of TRAI such as compensation for dropped calls were termed as unreasonable and arbitrary.
Non-binding Powers: The recommendations of the TRAI are not binding upon the Central Government. In case of objection, the central government refers the recommendation back to the Authority for its reconsideration.

Telecom Disputes Settlement and Appellate Tribunal (TDSAT)

About: Telecom Disputes Settlement Appellate Tribunal (TDSAT) was set up to adjudicate disputes, dispose of appeals, protect the interests of service providers and consumers, and to promote the orderly growth of the telecom sector.
- Prior to the setting up of TDSAT, the Telecom Regulatory Authority of India handled all issues and disputes related to the telecom sector in the country.
Composition: The members of TDSAT include the chairman and not more than two whole-time members and not more than two part-time members appointed by the Union Government.
- Members of the TDSAT are appointed by the Government of India after consultation with the Chief Justice of India.
Qualifications: A person can be appointed as the Chairperson of TDSAT unless he/she is or has been a Judge of the Supreme Court or the Chief Justice of a High Court.
- Other Members of the tribunal must have held the post of Secretary to the Government of India or any equivalent post in the Central/State Government.
Tenure of Members: The Chairperson of TDSAT can hold office for a term of four years or till the age of seventy years, whichever is earlier.
- In the case of other members, they can serve for a maximum period of four years or the maximum age of sixty-five years, whichever is earlier.
Removal: members of TDSAT can be removed under the same conditions as that of TRAI.
Functions: It adjudicates disputes between
- between a licensor and a licensee;
- between two or more service providers;
- between a service provider and a group of consumers.
Jurisdiction: Civil courts have no jurisdiction to handle any matter which the TDSAT is empowered to determine.
- The decisions of TDSAT are considered as the decree of civil court, and the Tribunal exercises all the powers of a civil court.
Approaching Powers: The Union Government, State Government, any local authority, or any individual can approach the TDSAT for adjudication.

Conclusion:

The Telecom Regulatory Authority of India or TRAI is an authority that is critical for maintaining order and also ensuring development of the telecom sector in India. Without TRAI, India’s telecom sector could turn into monopolies of the few and hamper consumer interests.

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Telecom Regulatory Authority of India FAQs

Telecom Regulatory Authority of India (TRAI) is a regulatory body set up by the Indian government under section 3 of the Telecom Regulatory Authority of India Act, 1997.

The Telecom Regulatory Authority of India (TRAI) has the main role of regulating the telecommunication sector in India. It seeks to create and nurture conditions for the growth of telecommunications in the country.

TRAI consists of a chairperson and not more than two full-time members and not more than two part-time members.

The Chairperson and other members of TRAI shall hold their office for a term of three years or till the age of 65 years, whichever is earlier.

The Telecom Disputes Settlement Appellate Tribunal (TDSAT) was set up to adjudicate disputes, dispose of appeals, protect the interests of service providers and consumers, and to promote orderly growth of the telecom sector.

Civil courts have no jurisdiction to handle any matter which the TDSAT is empowered to determine. The decisions of TDSAT are considered as the decree of civil court, and the Tribunal exercises all the powers of a civil court.

The Union Government, State Government, any local authority, or any individual can approach the TDSAT for adjudication.

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Telecom Regulatory Authority of India (TRAI): Origin, Structure, and Functions

About Telecom Regulatory Authority of India (TRAI)

Telecom Regulatory Authority of India (TRAI): Structure and Composition

Telecom Regulatory Authority of India (TRAI): Powers

Telecom Regulatory Authority of India (TRAI): Functions of TRAI

Telecom Regulatory Authority of India (TRAI): Criticism

Telecom Disputes Settlement and Appellate Tribunal (TDSAT)

Conclusion:

Telecom Regulatory Authority of India FAQs

What is the Telecom Regulatory Authority of India (TRAI)?

What is the main objective of the Telecom Regulatory Authority of India (TRAI)?

What is the composition of the Telecom Regulatory Authority of India (TRAI)?

What is the tenure of members of the Telecom Regulatory Authority of India (TRAI)?

What is the Telecom Disputes Settlement and Appellate Tribunal (TDSAT)?

What is the jurisdiction of the Telecom Disputes Settlement and Appellate Tribunal (TDSAT)?

Who can approach the Telecom Disputes Settlement and Appellate Tribunal (TDSAT)?

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