Telecom Companies Will Not Have To Pay For Call Drops

12 May 2016 : In a verdict which promises to bring much relief to telecom companies in India, the Supreme Court bench of Justices RF Nariman and Kurian Joseph has ruled against telecom companies being liable to pay for call drops.

The cartel comprising of 4-5 telecom companies had approached the SC against the verdict given by Delhi HC.

According to the SC, the verdict given by the Delhi HC was arbitrary and unreasonable. The SC has also requested the Parliament to pass a legislation in this regard. The COAI comprising of 21 telecom operators had challenged the verdict given by the Delhi HC which made it compulsory for telecom operators to compensate the subscribers for dropped calls. The Delhi HC had in its decision directed telecom companies to pay to subscribers Rs. 1 per call drop, subject to a maximum limit of Rs.3 in a day.

The Delhi HC had given the ruling seeing the subscriber base of the telecom companies which is approximately 1 billion. The telecom companies are reported to be making around Rs.250 crore per day through outgoing calls. The Delhi HC had given the verdict on the basis that telecom companies were diverting the profits made for further money making investments rather than on improving the services provided to consumers.

The SC ruling will provide a major relief to the operators.


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