TRAI's Report on Activities 2014

The TRAI recently issued its report on activities in 2014. The Authority initiated various measures to promote the growth and development of the telecom and broadcasting sectors during 2014.

On the telecom front, TRAI addressed the complex issues of Spectrum Pricing, Spectrum Trading and Spectrum Sharing. Recommendations were made to the Government on improving telecom services in Andaman & Nicobar Islands & Lakshadweep and provisioning of INMARSAT/Satellite services.

On the tariff front, the Authority continued with the general policy of forbearance in respect of most services. The ceiling tariff for Domestic Leased Circuits (DLCs) was reduced. With this reduction, customers seeking DLCs on thin routes connecting small cities, remote and hilly areas etc. would benefit. The reduction in ceiling tariff for DLCs would also boost the overall growth of the economy. The Authority issued the International Calling Card Service (Access charges) Regulations 2014. These regulations are expected to pave the way for introduction of calling cards, resulting in real choice for the customer to pick his/her international long distance operator. This would further lower the tariff for ISD Calls. Effective measures in consumer interest were also taken.

In the Broadcasting Sector, the Authority addressed the issues of Migration of FM Radio Broadcasters to the next phase, grant of new DTH Licenses, Media Ownership and Community Radio. The Authority also sent its recommendations on the Regulatory Framework for Platform Services. The Authority also made some recommendations on a regulatory framework for ground-based broadcasters to ensure that any TV channel that is distributed on any TV network in India is covered by a regulatory framework, whether it is obtained from a satellite-based broadcaster; produced by the network operator or sourced from a terrestrial broadcaster.

Through its regional offices located in different parts of the country, the Authority strived to increase its field level outreach by holding consumer outreach programmes (CoPs) and workshops for enhancing consumer awareness and soliciting consumer participation. These were efforts to improve the TRAI - consumer interface and address systemic issues quickly. TRAI also focused on effective implementation of its orders, directions and regulations. Close monitoring of adherence to regulatory requirements, imposition of financial disincentives for non-compliance, and institution of prosecution complaints in cases of grave misdemeanour, all resulted in better compliance and regulatory enforcement.

The report presents an abstract of the activities of the Authority during the calendar year 2014. This report is also available in the public domain for information of all stakeholders. The classification of activities has only been done to provide ease of reading. All the recommendations, regulations, orders and directions etc. referred in this report are available on the TRAI website www.trai.gov.in and can be referred to for detailed information. It is hoped that this report gives the stakeholders a broader view and better understanding of the initiatives taken by the Authority to enhance the growth of telecom and broadcasting sectors.

Here’s a glance through the various activities of 2014.

I. CONSUMER INTERESTS

Protection of consumers is one of the important functions of TRAI. The Authority has taken several measures to improve the regulatory mechanism which contributed towards improving consumer satisfaction. TRAI also interacted with consumer organizations to increase their awareness and include their views and concerns in policy making.

During the year, the following additional measures were taken to improve delivery of services:

Quality of Service: The Authority has laid down the standards of Quality of Service (QoS) for various services provided by the telecom service providers
(TSPs) to their customers. TRAI also monitors and ensures compliance of the standards to ensure good service to consumers.

1. The Quality of Service of Broadband Service (Second Amendment) Regulations 2014 were issued on 25th June, 2014.

2. The “Standards of Quality of Service for Wireless Data Services (Amendment) Regulations, 2014”, was issued on 24th July, 2014.

3. The Standard of Quality of Service of Basic Telephone Service (wire line) and Cellular Mobile Telephone Service (Third Amendment) Regulations 2014 was issued 21st August 2014.

4. Direction to Multi System Operators (MSOs) in DAS areas to ensure delivery of individual subscriber bills, provide option for online bill payment and electronic acknowledgment to the subscriber for the payment made was issued on 27th May 2014.

Retail and Wholesale Tariffs: TRAI protects interests of consumers through Tariff Regulations and determines the rates at which telecom and broadcasting services are offered to consumers. Tariff regulation is carried out to ensure clarity and transparency in tariff offers to consumers and fixing of tariff charges where the market is not delivering optimal rates. In view of the intense competition in the telecom sector, the Authority has exercised forbearance vis-à-vis the tariff for most telecom services. The following tariffs were specified during the period:

1. The Telecommunications (Broadcasting and Cable) Services (Second) Tariff Order (Eleventh Amendment dated 31st March 2014 and Thirteenth Amendment was issued on 31st December 2014)

2. Amendment to tariff orders / regulations pertaining to commercial subscribers

3. Telecommunications Tariff (Fifty seventh Amendment) Order 2014 dated 14th July 2014 & Telecommunications Tariff (Fifty eighth Amendment) Order 2014 dated 1st August 2014, reduces ceiling tariffs for Domestic Leased Circuits (DLCs)

Transparency in Service Provisions

Ensuring transparency in service provision is an important dimension of consumer protection. TRAI has taken the following steps for ensuring such transparency:

1. Amendments to the existing regulatory framework with regard to distribution of TV channels from broadcasters to Distribution Platform Operators (DPOs) viz. Cable, DTH, HITS and IPTV operators

2. “International Calling Card Services (Access Charges) Regulations, 2014” were issued on 19th August, 2014

3. Directions were issued on 30th September and 7th November 2014 to M/s Loop Mobile (India) Limited with regard to closure of services in Mumbai Licensed Service Area (LSA) due to expiry of its CMTS licence on 29th November, 2014

Combating Spam (Unwanted telemarketing calls)

1. The Telecom Commercial Communications Customer Preference (Fifteenth Amendment) Regulations, 2014" were issued on 7th April 2014

2. The Telecom Commercial Communications Customer Preference (sixteenth Amendment) Regulations, 2014" were issued on 9th December 2014

3. Amendment to Direction dated the 10th December, 2008 providing codes for alphanumeric identifier towards sending commercial SMSs

4. Direction for obtaining explicit consent of consumers for provisioning non subscription based Value Added Service products embedded in SIM Application Tool Kit (STK) of SIM card.

II. RECOMMENDATIONS

Recommendations were made to the Government on diverse subjects including market structure and entry of new operators in the sector, the licensing framework and management of scarce resources such as spectrum, telecom development in remote areas and to underserved populations, consumer safety and security. Under this mandate, TRAI took action on the following matters during the year:

Spectrum

1. Recommendations were issued on 28th January 2014 on Working Guidelines for Spectrum Trading

2. Recommendations were issued on 22nd February 2014 on Reserve Price for Auction of Spectrum in the 800 MHz Band

3. Recommendations were issued on 21st July 2014 on ‘Guidelines on Spectrum sharing’

4. Recommendations were issued on 29th August 2014 for ‘Allocation and pricing of Microwave Access (MWA) and Microwave Backbone (MWB) RF carriers’

5. Recommendations were issued on 15th October 2014 on “Valuation and Reserve Price of Spectrum: Licences expiring in 2015-16”

6. Recommendation on “Valuation and Reserve Price of Spectrum: 2100 MHz Band”

Licensing

Recommendations were issued on 12th May 2014 on ‘INMARSAT / Satellite Phone services’

Universal Access to Telecom

Recommendations were issued on 22nd July 2014 on ‘Improving telecom services in Andaman and Nicobar Islands (ANI) and Lakshadweep

Full Mobile Number Portability

Opinion of TRAI dated 21st July 2014 on additional entry fee and Bank Guarantees for MNP licensees for ‘Full Mobile Number Portability’

Adjusted Gross Revenue (AGR) in the ISP Licence Agreement

Recommendations were issued on 1st May 2014 on ‘Definition of Adjusted Gross Revenue (AGR) in Licence Agreements for provision of Internet services and minimum presumptive AGR’

FM Radio

Recommendations were issued on 20th February 2014 on “Migration of FM Radio Broadcasters from Phase-II to Phase-III

Direct to Home (DTH)

Recommendations were issued on 23rd July 2014 on “Issues related to New DTH Licenses”

Media Ownership

Recommendations were issued on 12th August 2014 on “Issues related to Media Ownership”

Community Radio

Recommendations were issued on 29th August, 2014 on “Issues related to Community Radio Stations”

Platform Services

Recommendations were issued on 19th November 2014 on the ‘Regulatory Framework for Platform Services’