TDSAT to rule on Rs 141 crore spam penalty against telcos on August 20
Telcos argue Covid-linked delays and incomplete anti-spam platform make TRAI’s fine unfair; tribunal had earlier stayed penalties.
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The Telecom Disputes Settlement & Appellate Tribunal (TDSAT) reportedly is to decide this week whether telecom operators must pay nearly Rs 141 crore in penalties imposed by the Telecom Regulatory Authority of India (TRAI) for failing to curb unsolicited commercial communication, commonly known as spam.
The case stems from TRAI’s move to penalise Reliance Jio, Bharti Airtel, Vodafone Idea, and state-run BSNL under the Telecom Commercial Communications Customer Preference Regulations, 2018. The regulator alleged that despite repeated directives, operators failed to effectively prevent spam messages and calls on their networks.
Read more: TRAI reiterates imposing Rs 153 cr penalty on telcos failing to address unsolicited calls
In January, TRAI reiterated its stand on imposing Rs 153 crore penalty on telecommunication companies for failing to address unsolicited calls, while responding to the queries raised by the Department of Telecommunications (DoT).
In December 2024, TRAI levied fines on telcos for inadequate efforts in curbing spam calls and messages. The penalties affected the likes of Reliance Jio, Bharti Airtel, Vodafone Idea, and BSNL. TRAI levied fines of approximately Rs 12 crore and adding previous penalties, the total amount stands at Rs 141 crore.
Several other smaller operators under the Telecom Commercial Communication Customer Preference Regulations (TCCCPR) were also penalised by the authority.
Since the telcos failed to settle the dues, TRAI had (in December) requested the DoT to recover the money by invoking the companies' bank guarantees.
TCCCPR aims to protect consumers from spam calls and messages. The Authority is in the process of revising and enhancing the TCCCPR to effectively combat spam.
However, telcos emphasise that spam cannot be combated unless all participants in the ecosystem, including OTT platforms and businesses, are held accountable.
At present, only telcos are held accountable for unwanted calls. However, as per the report, telemarketing companies will also now be held responsible and may come under the purview of authorisation.
The telcos challenged the penalties before TDSAT, arguing that TRAI’s action was premature and unfair, as the digital consent acquisition (DCA) platform, central to the new anti-spam framework, was still being rolled out when the fines were imposed.
The operators also cited delays caused by the Covid-19 pandemic as being beyond their control.
In January this year, TDSAT stayed TRAI’s order, observing that it was “unfair and arbitrary” to hold operators accountable for delays linked to system implementation that was outside their purview.
DoT had earlier rejected TRAI’s proposal to encash the bank guarantees of operators for non-payment of the fines.
At the last hearing on August 8, TRAI filed an affidavit providing details sought by the tribunal. The matter reportedly is now scheduled for August 20, when operators are expected to submit their responses.
While TRAI’s current rules put the responsibility on operators, industry executives argue that telemarketers, the key players who generate and disseminate spam, remain largely outside regulatory oversight. Telcos maintain that unless telemarketers are brought directly under stricter regulation, penalties on operators alone will not solve the problem.
