Strategic Role of

TRAI(Telecom Regulatory Authority of India)

The Telecom Regulatory Authority of India (TRAI) was formed in January 1997 with a view
to provide an effective regulatory framework and adequate safeguards to ensure fair
competition and protection of consumer interests. The functions of the TRAI were
enumerated under the TRAI Act, and various issues including role of TRAI in licensing
policy, ability to adjudicate on matters between the licensor and licencee and extent of
recommendatory function have been examined. The Government is committed to a strong
and independent regulator with comprehensive powers and clear authority to effectively
perform its functions. After examining these issues, not only from existing statutory
provisions but also the appropriate role of a regulatory authority for rapid development and
enhancement in the communication sector, the Government proposes to implement the
following.

The TRAI Act shall be suitably modified to cover adjudication of disputes between the
Licensor and service provider, in addition to its existing powers to adjudicate disputes
amongst service providers or between service provider and consumers.

The Government would mandatorily seek the recommendations of the TRAI on various
issues of policy and matters related to development of the communications industry. The
recommendations of the TRAI shall not be binding on the Government.

As at present, TRAI would continue to monitor and determine the appropriate tariff structure
on an ongoing basis to equitably protect the interest of consumers and industry. However, on
a progressive basis, with the opening up of the communications sector and the proposed
policies on interconnection amongst various service providers, it is expected that the
commercial arrangements will be determined based on bilateral arrangements. The TRAI
would also ensure availability of interconnect on a non-discriminatory basis.

The Telecom Regulatory Authority of India (TRAI) was formed in January 1997 with a view
to provide an effective regulatory framework and adequate safeguards to ensure fair
competition and protection of consumer interests. The Government is committed to a strong
and independent regulator with comprehensive powers and clear authority to effectively
perform its functions.

Towards this objective Government proposes the following :-

 TRAI will be involved in the dispute settlement between Licensor and Licensee to
speed up the process of resolving any disputes.
 Clarify that the dispute arising out of such licensing conditions that involve fulfilment
of obligation by DoT as service-provider would fall within the jurisdiction of TRAI.
 Though legally not mandatory, Government will normally seek recommendations
from the TRAI on need and timing of new licenses and other important policy matters
 relating to development of Communications industry. These recommendations,
however, will not be binding on the Government.

As at present, TRAI would continue to monitor and determine the appropriate tariff structure
on an ongoing basis to equitably protect the interest of consumers and industry. However, on
a progressive basis, with the opening up of the communications sector and the proposed
policies on interconnection amongst various service providers, it is expected that the
commercial arrangements will be recommended based on bilateral arrangements. The TRAI
would also ensure availability of interconnect on a non-discriminatory basis.

By:

Abhishek Kumar Singh

MBA/04