Impact of call drop penalty will be only 0.4% of telcos' revenue: SC

Attorney General of India Mukul Rohatgi has defended the proposed penalty on telecom companies for call drops, ANI said.

Telcos have been opposing a proposed move to be penalised for call drops. The issue has been under contention for quite some time now.

However, Rohatgi said in the SC on Thursday, "Service providers don't care about money loss to subscribers due to call drops."

Defending the penalty on telcos, the SC said that "telecom companies have not been making any investment on their network" to improve services and curb the issue of call drops. 

He also noted that "four-five service providers are running a cartel of a billion subscribers."

"These telcos make about Rs 250 crore a day from calls, while the impact of call drop penalty will be just 0.4% of the telcos' revenue," he said.

It is proposed that a penalty should be levied on telecom operators if the number of call drops exceed 2%.