The Telecom Regulatory Authority of India (TRAI) has proposed key compliance reforms for the telecom sector, including graded financial penalties, higher disincentives, and interest on delayed payments. The regulator has released two draft amendments to strengthen enforcement around tariff reporting and accounting submissions by telecom operators. Stakeholders have been asked to submit their comments by October 31, 2025.
Under the draft tariff amendment, delays in reporting new tariffs will now attract penalties of Rs 10,000 per day for the first seven days and Rs 20,000 per day thereafter, which is double the earlier Rs 5,000 daily charge. The total disincentive is capped at Rs 0.5 million, up from Rs 0.2 million earlier.
Additionally, operators defaulting on penalty payments will incur interest at 2 per cent above the State Bank of India’s (SBI) one-year marginal cost of lending rate (MCLR), calculated monthly. TRAI will, however, retain the discretion to waive or reduce penalties in justified cases.
A separate amendment to the accounting separation regulations, Reporting System on Accounting Separation (amendment) Regulations, 2025 proposes higher fines of Rs 20,000 per day for the first seven days and Rs 40,000 per day thereafter, capped at Rs 1 million.
Further, for repeat violations across consecutive years, the penalty will rise to Rs 50,000 per day for the first week and Rs 75,000 per day thereafter, with a maximum limit of Rs 2.5 million.
Service providers found submitting false reports or concealing key information could face penalties of up to 1 per cent of their annual turnover, a steep increase from the previous Rs 1 million ceiling.
TRAI stated that these amendments aim to curb frequent delays in tariff and accounting submissions, which hinder regulatory oversight and create an uneven playing field for compliant operators.
