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TRAI Unveils Draft Amendments to Tariff Order and Accounting Separation Regulations

 

Key Highlights of TRAI’s Latest Draft Amendments

The Telecom Regulatory Authority of India (TRAI) has released two significant draft amendments aimed at strengthening regulatory compliance in the telecommunications sector:

  • Draft ‘The Telecommunication Tariff (Seventy Second Amendment) Order, 2025’
  • Draft ‘The Reporting System on Accounting Separation (Amendment) Regulations, 2025’

These amendments target modifications to the existing provisions in:

  • The Telecommunication Tariff Order, 1999
  • The Reporting System on Accounting Separation Regulations, 2016

Proposed Changes to Financial Disincentives

TRAI’s draft introduces a comprehensive overhaul of financial disincentive mechanisms to promote better adherence to regulatory standards. The key proposals include:

Graded Implementation of Penalties

Financial disincentives will now be applied in a tiered, graduated manner to encourage compliance and allow operators proportional responses to violations.

Revised Penalty Amounts with Ceilings

The amendments prescribe updated amounts for financial disincentives, complete with a defined ceiling on the total penalty that can be imposed, providing predictability and capping potential liabilities.

Interest on Delayed or Non-Payments

A new provision mandates the imposition of interest on any delayed or non-payment of financial disincentives, ensuring timely compliance and deterring evasion.

Submission Guidelines for Stakeholders

The draft documents are available for public review on TRAI’s official website: www.trai.gov.in.

Interested stakeholders are invited to submit their written comments by October 31, 2025. Electronic submissions should be directed to:

  • Contact: Shri Vijay Kumar, Advisor (Financial & Economic Analysis)
  • Email: [email protected]

These amendments represent TRAI’s ongoing efforts to refine regulatory frameworks, enhance financial accountability, and foster a compliant telecom ecosystem in India.



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