Telecom stocks edge lower as Trai's spam call norms have prescribed substantially high penalties for telcos

Telecom stocks are trading lower after the Cellular Operators' Association of India (COAI) expressed concerns that the Trai's new norms to tackle spam calls and messages have substantially increased penalties for telcos.

Cellular Operators' Association of India (COAI) has expressed concerns that the Trai's new norms to tackle spam calls and messages have prescribed substantially increased penalties for telcos and rued the absence of any regulation for OTT Communication Services that the industry body pointed out, has seen an influx of spam. While raising concerns about increased penalties, it said COAI had submitted that Financial Disincentives (FDs) on Telecom Service Providers (TSPs), in being the only intermediary in this process, do not serve any purpose and have failed to address the issue in Trai's all attempts to curb UCC (Unsolicited Commercial Communication).

Instead, if these penalties are required, it should be directed to TM-D or the principal entities who are actual originators and beneficiaries of the commercial communications. It has expressed disappointment over Trai's amendment of the Telecom Commercial Communications Customer Preference Regulations (TCCCPR), 2018, to strengthen consumer protection against Unsolicited Commercial Communication (UCC), which has been issued without addressing all relevant issues.