TRAI Proposes Up to Rs 50 Lakh Fine for Telecom Operators Over Inadequate Customer Complaint Handling

Telecom Regulator Proposes New Mechanism for Customer Grievance Redressal

The Telecom Regulatory Authority of India (Trai) has proposed a new mechanism for telecom operators to resolve customers' grievances, suggesting a fine of up to Rs 50 lakh per quarter on telcos in case of violations. The proposed Telecom Consumers Complaint Redressal (Fourth Amendment) Regulation, 2026 aims to make it mandatory for service providers to offer a clear complaint registration facility on their web portal, apps, and chatbots, with regular updates to be provided to consumers on action taken on registered grievances.

Under the proposed regulation, if a complaint or an appeal is dismissed improperly or disposed of unsatisfactorily during a complaint audit, the service provider shall be liable for a financial disincentive of Rs 1,000 per improper dismissal or disposal of the complaint. In case of improper dismissal or disposal of an appeal, the fine will be Rs 5,000 for each offence. The maximum amount of financial disincentive payable by a service provider shall not exceed rupees fifty lakhs per quarter for the licensed/authorised service area.

The draft regulation also proposes that every service provider shall ensure that a consumer is able to register complaints or appeals and raise requests or queries through their web portal, website, as well as mobile applications. Telecom operators will have to provide subscribers the option to select the category of their communication, comprising complaint, appeal, service request, or query. In addition, the app/portal shall further provide an option for the complainant to share the details of their issue by entering text or via voice note.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The draft regulation also mandates that service providers provide mandatory updates and information to consumers regarding the status, actions taken, and projected resolution timelines for their complaints through the application interface, until final resolution. Moreover, Trai has proposed that all telecom operators should have a 'Consumer Corner' on their website displayed prominently on the homepage. The section should have information and statistics related to the complaint centre, appellate authority, report of consumer satisfaction surveys, and quarterly performance reports.

Trai has fixed June 5 as the last date for comments on the draft regulation. This new mechanism aims to improve the customer grievance redressal process and ensure that telecom operators provide better services to their subscribers.