The Cellular Operators Association of India (COAI) has heavily criticised the decision to order mobile operators to compensate customers for dropped calls, saying the move punishes telcos for issues that are often beyond their control.
In a bid to improve quality of service, the Telecom Regulatory Authority of India (TRAI) late last week ruled that from 1 January 2016, operators must compensate users to the amount of 1 rupee (€0.01) per call dropped, up to a maximum of INR3 per day.
The new rule will not apply to the receiving network, only the originating network, which has four hours to notify an affected user of the compensation. Prepaid users will have their account credited, while contract customers will see their compensation on their next bill.
"Compensation to the consumers for call drops is not the correct approach and will not resolve the underlying problems which are in the main, beyond the immediate control of the operators," said Rajan Mathews, director general of the COAI, in a statement on Friday.
The main problem, according to the lobby group, is the lack of cell sites. This is a difficult issue for operators to address because there are several challenges when it comes to deploying equipment, such as gaining clearance; power supply problems; and damage to local fibre networks caused by other infrastructure projects.
In addition, operators frequently face consumer opposition to new cell sites due to perceived health issues.
"These operational challenges coexist in an environment of shortage of spectrum at a time when data traffic growth is surging and is only adding to the woes of the industry and more importantly the customers," the COAI said.
