Critical examination of autonomy and accountability of regulatory and policy function with special reference to telecommunication sector

Abstract

Till late 1980s Telecommunication services in India were provided by Govt owned entity i.e Department of Telecommunication (earlier, P&T Department). This was as per the conjecture that telecom was a natural monopoly and it would be efficient to leave the telecom service delivery through a single firm. As per that Government (DoT) played the roles of monopoly service provider, licensor and regulator. Soon, Country realized the significance of telecom sector for the economic growth of the country and Govt of India, rightly decided to open up the telecom sector for private participation i.e move from monopoly to competition. The entry of private mobile telecom operators in the year 1994 necessitated the role of regulator so as to ensure transparency and level playing field for all the players. Government of India vide Telecom Regulatory Authority of India Act 1997, established TRAI, the sectoral regulator, whose job is to regulate telecom services in the country apart from adjudicating telecom disputes. One of the main objectives of TRAI is to provide transparent, fair and conducive policy environment to foster orderly growth and fair competition. Over the years, TRAI has taken innumerable actions in the areas of tariff, consumer protection, Spectrum pricing, licensing, interconnection, New Telecom Policies etc to further these objectives. Later, in the year 2000, the TRAI Act 1997 was amended to give birth to TDSAT (Telecom Disputes Settlement Appellate Tribunal), a quasi-judicial body set up to adjudicate telecom disputes and disposal of appeals. The Telecom Regulatory institutions of the world can be classified into 3 different models based on the functions they carry out i.e 1) Regulatory +Policy Function + Licensing 2) Regulatory+Licensing and 3) Regulatory function alone. India adopted the 3rd model, vesting the regulatory and unbinding recommendary functions with TRAI. This paper examines whether TRAI has enough autonomy in discharging its functions within the framework and as per the slated objectives. Broadly, TRAI carries out, two functions i.e directions to service providers as per regulatory mandate and unbinding recommendations to government in pursuant of its advisory functions under the TRAI Act.