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New Telecom Policy 1999

March 30, 1999
New Delhi

7.0 Role of Regulator

The Telecom Regulatory Authority of India (TRAI) was formed in January 1997 with a view to provide an effective regulatory framework and adequate safeguards to ensure fair competition and protection of consumer interests. The Government is committed to a strong and independent regulator with comprehensive powers and clear authority to effectively perform its functions.

Towards this objective the following approach will be adopted:

  • Section 13 of the TRAI Act gives adequate powers to TRAI to issue directions to service providers. Further, under Section 14 of the Act, the TRAI has full adjudicatory powers to resolve disputes between service providers. To ensure a level playing fields, it will be clarified that the TRAI has the powers to issue directions under Section 13 to Government (in its role as service provider) and further to adjudicate under Section 14 of the Act, all disputes arising between Government (in its role as service provider) and any other service provider.
  • TRAI will be assigned the arbitration function for resolution of disputes between Government (in its role as licensor) and any licensee.
  • The Government will invariably seek TRAI’s recommendations on the number and timing of new licences before taking decision on issue of new licenses in future.
  • The functions of licensor and policy maker would continue to be discharged by Government in its sovereign capacity. In respect of functions where TRAI has been assigned a recommendatory role, it would not be statutorily mandatory for Government to seek TRAI’s recommendations.

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