India Court Orders Mobile Carriers to Pay Up for Dropped Calls

  • Delhi Court upholds regulator's Oct. 16 decision on payments
  • Authority ordered companies to pay 1 rupee per dropped call

A top court in India upheld regulations requiring mobile phone operators to compensate customers for dropped calls.

A two judge Delhi High Court bench headed by Chief Justice G Rohini said there was no merit in the petition by the Cellular Operators Association of India and other mobile operators to eliminate the payment. Mobile operators can appeal the decision to the Supreme Court.

In October, the Telecom Regulatory Authority of India mandated that operators pay customers 1 rupee per dropped call for as much as 3 rupees a day to compel carriers to raise capacity. Operators responded by blaming poor service on a lack of “adequate and affordable spectrum.”

The shares of Bharti Airtel Ltd., India’s biggest mobile service provider, rose 0.3 percent to 319 rupees at 1:06 p.m., local time. Reliance Communications Ltd. fell 2.1 percent.

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