Wrong nos to cost telcos a tidy sum
A disconnect between the subscriber and his whereabouts can cost telcos a neat sum.
By Joji Thomas Philip, TNN |
NEW DELHI: A disconnect between the subscriber and his whereabouts can cost telcos a neat sum. The Department of Telecommunication (DoT) may impose a financial penalty on telecom operators for issuing telephone connections without subscriber verification. Such hasty connections would be seen as a violation of the licence clauses.
All operators-both GSM and CDMA-have time till the month-end to individually reply to the government why action, including a penalty imposition, shouldn’t be taken against them for violation of the licence agreement. Despite all operators presenting a counter-proposal where each service provider had undertaken to verify 10% of the subscriber base by December , DoT is unwilling to take a joint reply . It has maintained that individual responses have to submitted to its show-cause notice before July end.
The Cellular Operators Association of India(COAI), the apex body representing GSM players and supported by Reliance Communications and HFCL (both CDMA players), had also pledged to ensure complete verification of the pre-paid base as of May 31, 2006 by March end.
For new connections, COAI said the operators would physically verify 10% of their net additions every month. DoT is unlikely to buy the operators claim that five months granted by it for a physical verification of subscriber addresses is unrealistic and impossible to adhere to, considering the enormous practical difficulties involved in the task.
This is because, the DoT in its letter dated 29 December, 2004, had reiterated and directed all licensees that all the telephone connections must be provided only after proper verification of the customers, department sources said. Similarly, sources added that DoT would not be satisfied with the operators’ undertaking for installing de-duping software by the end of August 2006 and to carry out a de-duping of their subscriber base on a regular basis to uncover any instances of multiple connections.
All operators-both GSM and CDMA-have time till the month-end to individually reply to the government why action, including a penalty imposition, shouldn’t be taken against them for violation of the licence agreement. Despite all operators presenting a counter-proposal where each service provider had undertaken to verify 10% of the subscriber base by December , DoT is unwilling to take a joint reply . It has maintained that individual responses have to submitted to its show-cause notice before July end.
The Cellular Operators Association of India(COAI), the apex body representing GSM players and supported by Reliance Communications and HFCL (both CDMA players), had also pledged to ensure complete verification of the pre-paid base as of May 31, 2006 by March end.
For new connections, COAI said the operators would physically verify 10% of their net additions every month. DoT is unlikely to buy the operators claim that five months granted by it for a physical verification of subscriber addresses is unrealistic and impossible to adhere to, considering the enormous practical difficulties involved in the task.
This is because, the DoT in its letter dated 29 December, 2004, had reiterated and directed all licensees that all the telephone connections must be provided only after proper verification of the customers, department sources said. Similarly, sources added that DoT would not be satisfied with the operators’ undertaking for installing de-duping software by the end of August 2006 and to carry out a de-duping of their subscriber base on a regular basis to uncover any instances of multiple connections.
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This is because, the Department of Telecommunication in its communication dated 24, June, 2003 had instructed all service providers to carry out special verification for bulk subscribers, device appropriate fraud management and prevention programme and also inspect bulk user premises at regular intervals to ensure bonafide use. Start a SIP with as low as ₹500 with ET Money App!
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