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Trai's CPP regime dumped by High Court - Views on News from Equitymaster
 
 
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  • Jan 19, 2000

    Trai's CPP regime dumped by High Court

    The Delhi high court has struck down the calling party pays (CPP) regime proposed by the Telecom Regulatory Authority in India (Trai).

    Under the CPP regime, cellphone users would not have to pay for receiving calls. However, callers dialing cellphone numbers would have to pay a premium. These funds would then be distributed between the two operators.

    The highlights of the court's orders are mentioned below:

    • The calling party regime has been struck down
    • Trai has does not have the powers to alter the interconnection rates specified in licence agreements
    • The Trai has complete authority over notifying rates of telecom services
    • In other matters, the Trai can only recommend and its suggestions are not binding on the government.

    With this latest verdict on the Trai's powers, it has become all the more necessary for the government to clarify the status of the regulator. Moreover, in keeping with its statement, the government needs to grant complete regulatory powers to the authority. This is necessary for the development of a vibrant sector in the country.

    The CPP regime is a well thought out measure that will stimulate the growth of the cellular telephony services in the country. Coupled with the proposals to lower import duty on hand sets and telecom related capital equipment, this move would have catalysed the growth of this sector.

     

     

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