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    Trai to ask DoT to set up an ombudsman to address consumer complaints

    Synopsis

    Trai Chairman RS Sharma recently told ET that consumers today have very few options to get their grievances over quality of services addressed.

    ET Bureau
    NEW DELHI: The Telecom Regulatory Authority of India (Trai) may shortly propose the setting up of an ‘ombudsman’ to resolve consumer complaints for the telecom sector, a move that comes shortly after the regulator sought more teeth to protect the rights of subscribers.

    "We are once again planning to propose this (setting up an ombudsman) to the department of telecommunications (DoT)," a senior Trai official told ET.

    This though won’t be the first time the telecom regulator will be knocking on the telecom department’s door for setting up a speedy dispute resolution mechanism for consumers.

    Since 2004, Trai has been requesting DoT to set up an ombudsman for the industry.

    But in the wake of the recent tussle between the industry and the regulator, which culminated in the Supreme Court scrapping Trai’s directive to telcos to compensate users for call drops, the regulator has been trying to put in place mechanisms to sort out consumer grievances.

    Trai Chairman RS Sharma recently told ET that consumers today have very few options to get their grievances over quality of services addressed. "The consumer can’t come to the Trai as our order has been struck down, can't go to the Department of Telecom because this is not the remit of the DoT, can't go to consumer court — where will the person go," he asked.

    In such a case, he said, the subscriber will be forced to again go back to the telecom service provider (TSP). "TSP is the aggressor, how can a consumer complain to the aggressor?" Sharma said.

    It is in this backdrop that the regulator is set to seek the appointment of an ombudsman, an independent body to which consumers can take their complaints. It has the powers to mediate settlements between consumers and their service providers and can act as a onestop solution to their woes as its recommendations are binding on all players. If the complainant subscriber is not satisfied, the consumer has the option to approach another forum.

    Banking and insurance sectors already have ombudsmen in the country. Trai, in fact, had sought setting up of an ombudsman on the lines of the bodies set up in the UK and Australia.

    Back in 2004, the then Trai Chairman Pradeep Baijal had written to then telecom secretary Nripendra Misra, saying "There should be an independent agency to look after consumer complaints in the telecommunication sector".

    Baijal had cited the unprecedented growth of the telecom sector and a consequent spurt in consumer complaints coupled with the Trai’s inability to process the complaints as chief reasons. Later in 2006, the then Trai Chairman Nripendra Misra too followed up with the DoT but in vain.

    Current Trai Chairman Sharma pointed out to ET that practically around 100 crore people are consumers of telecom.

    "There is no other sector with such a mass base. An average consumer probably has complaints worth Rs 30 or Rs 20 a month. Very small value but large numbers," Sharma said.

    Currently, only the Telecom Complaint Redressal Regulations 2012 provide for consumer redressal, but consumer groups and industry say it is a far cry from an independent body. Experts say the regulation mandates all telecom service providers (TSPs) should set up a two-tier grievance redressal mechanism but that clearly won’t be an independent body.

    The GSM and CDMA industry associations – COAI and AUSPI – had in 2007 joined hands to set up an ombudsman but the announcement never saw the light of the day.


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