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Consider the following statements regarding the Telecom Regulatory Authority of India (TRAI):
  1. It is a regulatory body set up by the Government of India under the Telecom Regulatory Authority of India Act, 1997.
  2. The recommendations made by the TRAI are binding on the Central Government.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements regarding the Telecom Regulatory Aut...
The Telecom Regulatory Authority Of India (TRAI) recently announced to change the rules regarding fake, promotional calls and SMS to customers.
About Telecom Regulatory Authority of India (TRAI):
  • It is a regulatory body set up by the Government of India under section 3 of the Telecom Regulatory Authority of India Act, 1997.
  • It is the regulator of the telecommunications sector in India.
  • Composition:
  • It consists of a Chairperson and not more than two full-time members, and not more than two part-time members.
  • The chairperson and the members of TRAI are appointed by the Central Government, and the duration for which they can hold their office is three years or until they attain the age of 65 years, whichever is earlier.
  • Government Control over TRAI:
  • TRAI is not a completely independent telecom regulator.
  • Under section 25 of the Act, it has the power to issue directions which are binding on TRAI.
  • The TRAI is also funded by the Central Government. 
  • Functions:
  • Making recommendations on various issues;
  • General administrative and regulatory functions;
  • Fixing tariffs and rates for telecom services; and
  • Any other functions entrusted by the Central Government.
  • The recommendations made by the TRAI are not binding on the Central Government.
  • Central Government has to mandatorily ask for recommendations from TRAI with respect to the need and timing of new service providers and the terms and conditions of the licence to be granted to the service provider.
  • TRAI also has the power to notify in the official gazette the rates at which telecommunication services are being provided in and outside India.
Hence only statement 1 is correct.
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