Consumer Dispute resolution under the Telecom Act 2023

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The Telecommunications Act of 2023 has strengthened the dispute resolution framework by introducing an online grievance redressal system. The aim is to expedite the resolution of conflicts between telecommunications companies and consumers while ensuring transparency in the redressal process. Following an inquiry, a telecom company found violating license or service terms may incur severe penalties, spectrum holdings cancellation, service restrictions, or even be prohibited from providing telecom services, depending on the seriousness of the breach. 

How does the online grievance redressal system operate, and who plays key roles? 
An Adjudicating Officer (AO), appointed by the Centre and not below the rank of joint secretary, will conduct inquiries to resolve disputes between telecom service providers and consumers. Additionally, a separate Designated Appeals Committee (DAC) will be formed, consisting of officers at the rank of additional secretaries. Individuals dissatisfied with an AO’s decision can appeal to the DAC, and those unhappy with the DAC's ruling can escalate the matter to the telecom tribunal, TDSAT. Both the AO and DAC will function digitally, conducting their operations entirely online, and any telecom company involved in a dispute must actively engage in the grievance redressal process.

What is the role of an Adjudicating Officer (AO)?
If a telecom company is found to violate the licence or service terms as per the Telecommunications Act, the AO initiates an inquiry by issuing a notice. Following the inquiry, the AO has the authority to issue a written order, requiring corrective actions. Additionally, the AO can impose specific civil penalties based on the severity of the breach. Moreover, the AO has the power to request the Centre to impose restrictions, halt services, or even cancel spectrum allotment for the concerned telecom company.

What types of penalties might telecom companies potentially encounter? 
For violations of conditions outlined in Sections 32 and 34 of the Telecom Act, penalties can vary, ranging from Rs 1 lakh for minor offenses to Rs 1-5 crore for more significant and severe breaches. The Adjudicating Officer (AO) determines the penalty amount by considering factors such as the gravity of the contravention, the number of affected individuals, whether it led to disproportionate gains, and if it was repetitive, negligent, intentional, or caused government revenue losses. Additionally, the AO examines whether the errant telecom company took any measures to mitigate the violation before determining the penalty.


What authority do the AO and DAC hold in the new grievance redressal system?
Both the Adjudicating Officer (AO) and the Designated Appeals Committee (DAC) possess the powers of a civil court, and the adjudication processes conducted by them will be considered judicial proceedings.

Are there mechanisms for voluntary disclosure, and how do they operate?
Telecom companies have the option to proactively disclose a contravention of licence or service terms to the AO before an inquiry begins. They can also provide a voluntary undertaking, detailing the steps already taken or proposed measures to address the contravention within a specified timeframe. If the AO accepts this voluntary undertaking, it will be considered a mitigation measure, and the AO must take it into account when determining the penalty.


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