Govt slaps Rs 700 cr fine on telcos for violation of laws

22 Mar 2011 Evaluate

Acting tough, the government has imposed fines worth Rs 700 crore on various telecom operators for carrying out illegal and clandestine activities in their services, particularly for non-compliance of the subscriber verification process. The penalty was imposed by Telecom Enforcement, Resource and Monitoring (TERM) Cells till January 2011 on various telecom service providers operating in different license service areas for non-compliance of subscriber verification guidelines.

The fine was imposed on defaulting entities which did not comply with government orders despite repeated warnings that 100 per cent verification of each and every subscriber was absolutely necessary for interests of the country's security. There have been several instances in the past where terrorists used mobile phone connections, which were issued without verification, to carry out terror acts in India. Because of non-compliance of the government rules, the Centre had in the past suspended operations of pre-paid mobile connections in Jammu and Kashmir. Cellular services to nearly 38 million pre-paid cell phone subscribers in Jammu and Kashmir, who comprise 60 per cent of total clientele in the state, was restored only after seven telecom operators -- Bharti Airtel, Vodafone Essar, Idea Cellular, Aircel, Tata Teleservices, Reliance Communications and state-run BSNL promised full compliance with the verification process.

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