Regulatory authorities have the crucial role of providing an effective regulatory framework and adequate safeguards to ensure fair competition and protection of consumer interests. The role of the regulatory authorities is much more significant during the reform process of any sector in a fast growing economy like India.

Regulatory authorities have several key functions to play with the changing technology and invention in their respective sector. Nevertheless the primary objective for the existence of a regulatory body is to protect consumer interests. In order to protect consumer interests, regulatory authorities:

• Must be accessible to consumers in a variety of modes including e-mail, toll-free phone, mail, e-filing, fax, etc for lodging complaints.
• Must acknowledge any complaint received and provide a reference number for tracking the status. They should lay down a feasible timeframe for resolving any kind of complaint.
• Must maintain the complete database of complaints and thereby revise and enforce new regulations for the benefit of other consumers.

The telecom sector in India has been opened up to private participants along with FDI (foreign direct investment) to some extent. The Government of India has established the Telecom Regulatory Authority of India as the regulatory authority for the telecom sector. TRAI has been vested with comprehensive powers and also has the responsibility of advising GOI on all policy matter pertaining to the telecom industry.

1.   Accessibility: TRAI

• TRAI is accessible currently to consumers through a New Delhi number and e-mail.
• Consumers from any part of India other than Delhi have to use STD to reach TRAI.
• E-mails sent to TRAI are never acknowledged / responded and are simply ignored.
• TRAI service personnel, who pick up the phone sporadically, mention that complaints can be lodged only by visiting their Delhi office personally rather than by e-mail or on phone.

2.   Cellular phone regulations: TRAI

Cellphones can be described as a necessity in this new century based on acknowledgement of the fact that mobile phone connections have already bypassed fixed line connections in India. Consumers accept the terms and conditions of the cellular operators and take up the connection without getting in to the nitty-gritty of the billing details.

Consumers start to panic as when their monthly bill goes way beyond their budget and get a feeling of being overcharged. Indian cellular consumers are deprived of some basic expectations from the cellular operators as they are not enforced by corresponding regulations by TRAI. Few of them are explained below:

• Itemised Billing Statement (IBS)

Tariff charges for different call categories (local, WLL, STD, inter-circle, roaming charges, etc) vary with each cellular operator in India. IBS (Itemised Billing Statement) helps the consumer to find out any billing discrepancies with pinpoint accuracy.

TRAI currently does not enforce this basic regulation on cellular operators to ensure all the post-paid consumers receive IBS by default as part of any plan chosen. Although IBS information is readily available with the cellular operators, currently it attracts a minimum charge starting from Rs 50 every month, except for a few privileged consumers.

Bills sent by many operators do not have the required clarity which is mandatory and the consumer has every right to receive the billing information precisely.

TRAI must impose strict regulations on the operators with regard to billing clarity. The need for billing clarity is not limited to cellular phones but to any kind of phone connection. It is ironic to note that there is no mention about IBS regulation in the white paper published by TRAI on billing issues in May 2005.

• Mobile Number Portability (MNP)

Number portability allows subscribers to change their service provider while retaining their current number. MNP gives the freedom to the consumers to switch the operator without any concern about retaining their number.

TRAI has produced an excellent white paper on number portability in July 2005. It is ironic to note a well-stated fact in the white paper that less developed countries like our neighbour Pakistan has already started implementing MNP programme when the cellular phone penetration is as low as approximately 7%.

Ideally, TRAI should have started implementing MNP programme as the cellular phone connections have already surpassed fixed line connections in India. Rejection of MNP by our leading cellular operators like Reliance [Get Quote] at this proposal stage is totally unacceptable.

It should be noted that private operators do support FNP (fixed number portability) as it helps them break in to state-owned operator's territory and they are against MNP which actually benefits many consumers and is the need of the hour.

• Toll Free Numbers / Emergency Numbers

Cellular operators simply do not route calls made to the toll free numbers set up on BSNL/ MTNL [Get Quote] and other emergency numbers as there is no policy set-up or enforced by TRAI. This defeats the purpose and meaning of toll free numbers and also hinders many service-oriented companies in their respective sectors to provide this basic facility to their consumers.

It should be noted that it is not expected to have this service completely free on cellular phones and the expectation is to have TRAI regulation and policy in place to handle the need.

3.   Conclusion

Reform process is intended to boost the economy and give the consumers a variety of options to choose from. However, when the corresponding regulatory authority fails, it does not serve the purpose which is the case with TRAI as it turned in to a complete fiasco.

As a result of this, majority public who used to support the reform process now tend to incline towards the Leftist view. It should be noted the state-owned operator is safe without the reform process as it prevents the growth of unscrupulous operators who do not have any sense and commitment towards building of the nation.

• The government must restructure TRAI and closely review its performance.
• TRAI should first create awareness to the general public that it is available to listen to consumer issues and act as an arbitrator to resolve the issues between the operator and the consumer.
• TRAI should never ever succumb to lobbying by private Indian telecom giants.

Anandaraj Gopal is an engineering graduate from Anna University and currently working with Tata Consultancy Services [Get Quote]. The views expressed are personal.