Date: 2026-03-25Category: Press ReleaseState: Union GovernmentCountry: India
Government policies and regulatory framework notified by TRAI have resulted in India having one of the lowest tariffs for subscribers of mobile services
**Executive Summary**
This report details the regulatory framework managed by the Telecom Regulatory Authority of India (TRAI) to ensure competitive tariffs and high Quality of Service (QoS) standards. It highlights the enforcement of the "Standards of Quality of Service of Access and Broadband Service Regulations, 2024," which mandates regular performance monitoring and tiered financial penalties for non-compliance. Key deadlines include the submission of monthly reports for mobile services and quarterly reports for Licensed Service Areas.
**Key Points / Main Content**
**Tariff Framework and Market Competition**
* **Forbearance Policy:** Under the TRAI Act, 1997, service providers are generally free to design and offer tariffs based on market dynamics, except for specific services like national roaming, rural fixed lines, and mobile number portability.
* **Cost Benefits:** The existing regulatory framework and market competition have resulted in India having some of the lowest mobile service tariffs globally.
**Quality of Service (QoS) Monitoring**
* **Performance Reporting:** TRAI monitors service providers through periodic reports; mobile service performance is reported monthly, while Licensed Service Area (LSA) reports are submitted quarterly.
* **Verification Measures:** Monitoring is supplemented by regular audits conducted by TRAI officers or independent agencies, alongside "drive tests" on selected routes to assess service quality in real-time.
* **Public Transparency:** The results of all audits, assessments, and drive tests are published on the TRAI website for stakeholder information.
**Enforcement and Penalties**
* **Regulatory Basis:** The 2024 QoS Regulations (dated 02.08.2024) provide a legal basis for imposing financial disincentives (FD) when benchmarks are not met.
* **Penalty Structure:** Financial disincentives are applied per benchmark contravention:
* **First contravention:** Up to ₹1 lakh.
* **Second consecutive contravention:** Up to ₹2 lakhs.
* **Subsequent consecutive contraventions:** Up to ₹3 lakhs.
* **Due Process:** Before imposing penalties, TRAI requires an explanation from the service provider and considers their response regarding the non-compliant parameters.
**Impact Analysis**
**Telecommunication Service Providers**
**Impact**
Providers are subject to rigorous performance benchmarks and must maintain transparency through frequent reporting. They face escalating financial liabilities for failing to meet QoS standards consecutively.
**Action Required**
Submit monthly and quarterly performance monitoring reports and respond to TRAI’s requests for explanation in the event of benchmark failures.
**Consumers**
**Impact**
Consumers benefit from regulated service standards and competitive pricing. They also gain access to objective data regarding the performance of different service providers.
**Action Required**
Monitor the TRAI website for published audit results and drive test assessments to make informed service decisions.
**Telecom Regulatory Authority of India (TRAI)**
**Impact**
The authority is empowered to act as a performance auditor and enforcer of service standards, ensuring market competition does not compromise quality.
**Action Required**
Conduct regular audits and drive tests, review performance reports, and impose financial disincentives as per the 2024 regulations.
Key Entities Referenced
Telecom Regulatory Authority of India (TRAI): The regulatory body responsible for notifying telecommunication rates, setting quality of service standards, and monitoring service provider performance.
Telecom Regulatory Authority of India Act, 1997: The primary legislation that empowers TRAI to regulate tariffs and establish quality of service benchmarks to protect consumer interests.
Standards of Quality of Service of Access and Broadband Service Regulations, 2024: Specific TRAI regulations providing for the imposition of financial disincentives on service providers for non-compliance with quality benchmarks.
Ministry of Communications: The primary ministry overseeing the telecommunications sector and the regulatory framework implemented by TRAI.
Dr. Pemmasani Chandra Sekhar: Minister of State for Communications and Rural Development who presented the government's position on telecom service quality and regulation.
Ministry of Communications
Government policies and regulatory framework
notified by TRAI have resulted in India having
one of the lowest tariffs for subscribers of mobile
services
TRAI protects interest of the consumers of
telecommunication services by regularly monitoring
performance of service providers
TRAI undertakes assessment of quality of service by
conducting drive test on selected routes
Posted On: 25 MAR 2026 5:24PM by PIB Delhi
The Telecom Regulatory Authority of India Act, 1997 empowers the Telecom Regulatory Authority of
India (TRAI) to notify the rates of telecommunication services. As per the existing tariff framework, tariff
for mobile and data services is under forbearance, except for services such as national roaming, rural fixed
line services, mobile number portability and leased circuits. Subject to compliance with extant regulatory
provisions, service providers are free to design and offer tariffs based on their understanding of the market
situation and other commercial considerations. Competition exists in the market and the policies of the
government and regulatory framework notified by TRAI has resulted in India having one of the lowest
tariffs for subscribers of mobile services.
Sub-clause (v) of clause (b) of sub-section (1) of section 11 of the TRAI Act, 1997 entrusts TRAI the
function of laying down the standards of quality of service to be provided by the service providers and
ensure the quality of service so as to protect the interest of the consumers of telecommunication services.
The following steps have been taken to monitor the quality of service of mobile services:
I. The performance of service providers is regularly monitored by TRAI against the benchmark
for various quality of service parameters laid down by TRAI, through collection of periodic
performance monitoring reports from service providers.
II. The said reports are submitted to TRAI on quarterly basis for each Licensed Service Area
(LSA). However, the reports for mobile services are submitted on a monthly basis.
III. Wherever the quality-of-service benchmarks are not met, TRAI calls for the explanation of
the service provider concerned and after considering the response of the service providers,
imposes financial disincentive as per the provision of regulations made by it.
IV. TRAI also carries out an audit of the said reports through its own officers or independent
agencies.
V. In addition, TRAI undertakes assessment of quality of service by conducting drive test on
selected routes through its own officers or independent agencies.VI. TRAI publishes the results of the audit and assessment of quality of service and drive tests on
its website for information of stakeholders.
TRAI’s Standards of Quality of Service of Access (Wireline and Wireless) and Broadband (Wireline And
Wireless) Service Regulations, 2024 dated 02.08.2024 has provision for imposition of financial
disincentives (FD) in case of non-compliance of prescribed benchmark of any QoS parameter by service
providers.
As per the regulations, service provider is liable to pay an amount not exceeding rupees one lakh per
benchmark for the first contravention: rupees two lakhs for the second consecutive contravention and
rupees three lakhs for each consecutive contravention occurring thereafter.
Accordingly, wherever the Quality-of-Service benchmarks are not met, the explanation of the concerned
service provider is called for and after considering the response of the service provider financial
disincentive are imposed on service provider for non-complied QoS parameters, as per the provision of the
QoS regulations.
This information was given by the Minister of State for Communications and Rural Development Dr
Pemmasani Chandra Sekhar in a written reply to a question in the Lok Sabha today.
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NJ/ARJ
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