Trai urges DoT to encash Rs 115 cr from telcos for spam-related violations

The Telecom Regulatory Authority of India (Trai) has recommended that the Department of Telecommunications (DoT) encash bank guarantees of telecom companies for failing to pay financial penalties imposed for their inability to curb spam, according to a report by The Economic Times (ET). If enacted, this unprecedented move would serve as a reminder of regulations previously ignored by telcos, resulting in a penalty of upto Rs 115 crore.

Recently, the telecom regulator has been doubling its efforts to eradicate spam messages and calls. Trai has also been reviewing its Telecom Commercial Communications Customer Preference Regulations (TCCCPR), with media reports suggesting that it may increase fines and penalties for telcos. The TCCCPR was drafted to bring respite to users from spam calls and messages. The regulation also levies penalties on telecom firms and telemarketers for not adhering to its rules.

Rs 115 crore to be recovered by Trai, DoT

The total amount to be recovered is Rs 115 crore, with Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd owing the largest amount, around Rs 50 crore, for defaults spanning 8-10 years. Bharti Airtel, Vodafone Idea, and Reliance Jio have outstanding dues of Rs 20 crore, Rs 15 crore, and Rs 12 crore respectively, for non-payment of penalties over 10 months to three years.

Who is responsible for curbing spam calls?

A senior telecom executive told ET that they have been in discussions with Trai and argued that they should not be held accountable for spam, as telemarketers and businesses are the originators of unsolicited messages and calls. Telecom operators have implemented a blockchain-based distributed ledger technology (DLT) to manage commercial traffic and reduce spam, in line with regulatory directives.

Trai, however, maintains that telecom firms are responsible for controlling unsolicited commercial communications (UCC), also known as spam, and have imposed financial penalties under the TCCCPR. The regulator has been issuing directives and penalties for years, but telecom companies have only deposited a nominal amount so far.

Trai also extended the deadline for whitelisting SMS content — required for registration with telecom operators — by one month to October 1 due to concerns raised by telcos, banks, and e-commerce companies about disruptions to commercial message deliveries.