JPC wants TRAI with more teeth

The report says that a credible regulator will be increasingly crucial in times going ahead

The draft report of the Joint Parliamentary Committee (JPC) on the telecom spectrum controversy has rooted for a more ‘effective’ and independent telecom regulator, saying it cannot be left at the mercy of the government. The report has said a credible regulator would be crucial in times ahead.

“The committee is of the unequivocal view that the government should decisively respond to the recommendations of Trai (Telecom Regulatory Authority of India) within a specific time frame, as it is currently mandatory for Trai to respond to a reference by the government within 60 days,” it has said.

These comments were made in the observations and recommendations report by the JPC in response to the Comptroller & Auditor General’s (CAG’s) report on the issue.

The committee recommended the Trai Act be amended to incorporate provisions to ensure a harmonious balance is maintained between the regulator and the licensor in the treatment of Trai recommendations.

These recommendations came after the JPC noted many Trai recommendations were ignored by the government for a long time. “Once Trai forwards its recommendations, the government is at liberty (at present) to accept, reject or keep it pending, without citing any tangible reason,” it said.

In some cases, the government’s decision was not even communicated to the regulator. “The committee are of the firm view that the recommendations being made by the regulator need to be accorded due weightage by the government,” the JPC recommended.

In 2005, ministry did not go ahead with auctioning of telecom spectrum though Trai made a reference on this to the ministry of finance. “However, such suggestions do not by themselves enjoy any mandate, unless and until they are transformed into decisions,” the JPC said, in response to the CAG using this information as evidence for suggesting a monetary loss of ~1.75 lakh crore. These astronomical figures, the JPC said, had caused ‘disrepute’, and wrongly put the country into a  category of one of the most corrupt nations in the world.

The panel also commended some of the Trai work, referring to its “path-breaking recommendations of October 27, 2003, on a Unified Licensing Regime, which “paved way for the existing telecom licensing mechanism in India”. It praised the procedures followed by Trai, in taking all stakeholders on board with its consultation papers and open-house discussions.

“The committee feel such an inclusive approach would lend a lot of weightage to the recommendations of the Authority. The observations of TDSAT (the appellate body) and Supreme Court of India regarding the role of Trai and the weightage that need to be accorded to its recommendations are indicators to this fact,” JPC said.
THE CASE OF MISSING JPC REPORT

• April 18, evening: JPC members get calls from the Lok Sabha secretariat saying the draft report has been sent to their residences. However, the report doesn’t reach any member. When members contact one another to check if any of them has received the report, they find none of them has got the report
• April 19, morning: JPC members again receive a message, saying the draft report has been sent to their residences. When members question senior officials of the Lok Sabha secretariat about this, they are told an inquiry will be conducted into the matter
• April 25: The JPC meeting is scheduled to take up the draft report for discussion