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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...
Explanation:
The Telecom Regulatory Authority of India (TRAI) is a regulatory body established by the Government of India under the Telecom Regulatory Authority of India Act, 1997. It is responsible for regulating the telecommunications sector in India and ensuring the orderly growth and development of the sector.

Statement 1: It is a regulatory body set up by the Government of India under the Telecom Regulatory Authority of India Act, 1997.
This statement is correct. TRAI was established by the Government of India through the Telecom Regulatory Authority of India Act, 1997. The Act empowers TRAI to regulate and promote fair competition in the telecom sector, protect the interests of consumers, and ensure the growth of the telecom industry.

Statement 2: The recommendations made by the TRAI are binding on the Central Government.
This statement is incorrect. While TRAI is a regulatory body and provides recommendations on various issues related to the telecom sector, its recommendations are not binding on the central government. TRAI's recommendations are advisory in nature and it is up to the government to accept, modify, or reject them.

TRAI plays a crucial role in the telecom sector by formulating regulations, issuing directions, and making recommendations on various aspects such as tariffs, quality of service, interconnection, licensing, and competition. It conducts consultations with stakeholders, undertakes research, and collects data to make informed decisions and recommendations.

The Telecom Regulatory Authority of India Act, 1997, empowers TRAI with certain powers and functions to regulate the telecom sector effectively. It has the authority to issue regulations and directions, resolve disputes, protect consumer interests, and ensure fair competition in the telecom market.

In conclusion, the correct statement is:
a) 1 only - The Telecom Regulatory Authority of India (TRAI) is a regulatory body set up by the Government of India under the Telecom Regulatory Authority of India Act, 1997. However, its recommendations are not binding on the central government.
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Community 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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Consider the following statements regarding the Telecom Regulatory Authority of India (TRAI): It is a regulatory body set up by the Government of India under theTelecom Regulatory Authority of India Act, 1997. The recommendations made by the TRAI are binding on the Central Government.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?
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