The Hindu Business Line : TRAI may be funded from operators' licence fees

THE Government proposes to fund the operations of the Telecom Regulatory Authority of India (TRAI) from the licence fee collected from operators instead of the present system of it giving grants to the regulator.

This is in line with TRAI's own recommendation that the government should give the regulator 0.05 per cent of the revenues collected as licence fee from the operators.

Other industry regulators such as the Insurance Regulatory and Development Authority and the Securities and Exchange Board of India are funded in a similar way to keep them independent of the government. Globally too, most telecom regulators are funded from the revenues collected from the operators.

The Government is also looking at allowing the telecom regulator to recruit experts and professionals from the industry. Under the present system, the government deputes officers primarily from the Indian Telecom Services and the Indian Economic Services cadres.

TRAI had earlier given several submissions to the government seeking permission to enhance the employee package to match industry standards. The regulator has been facing severe manpower crunch, with over 30 posts lying vacant which had forced it to outsource some of its activities to private consultants.

However, the Government is not keen to give up all its controls on TRAI. A new committee with representation from the industry, government and consumers is being proposed to oversee the functioning and expenditure of TRAI. On retirement or resignation, TRAI officers also would not be permitted to accept commercial employment with any telecom service provider or equipment vendor. The regulator may also be asked to adopt a `light touch' approach to regulation and refrain from micro management.

TRAI and the Government have been at loggerheads for some time now with the former demanding more powers.

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