TRAI New Rules 2026: Telecom Companies Face Penalties of Up to ₹20 Lakh

TRAI has tightened telecom complaint rules, introduced penalties of up to ₹20 lakh and proposed AI governance guidelines to strengthen consumer protection and accountability across India's telecom sector.

TRAI's New Telecom Rules: AI Oversight, Consumer Protection and Penalties Up to ₹20 Lakh

India's telecom regulator, the Telecom Regulatory Authority of India (TRAI), has introduced stricter requirements for telecom operators to improve customer grievance redressal and accountability. The changes include financial penalties for mishandling consumer complaints, mandatory round-the-clock complaint support and greater human supervision of automated services.

Alongside these amendments, TRAI has proposed a separate framework to promote the responsible use of artificial intelligence (AI) in telecom networks and services.

The two developments, announced on October 30 and November 2, 2026, aim to address challenges emerging from the growing use of automation and AI across the telecommunications industry.

TRAI Introduces Penalties of Up to ₹20 Lakh for Telecom Operators

On November 2, TRAI notified the Telecom Consumers Complaint Redressal (Fourth Amendment) Regulations, 2026. Under the revised rules, telecom companies can face financial disincentives for improperly resolving consumer complaints and appeals.

The penalties include:

• ₹1,000 per complaint: For every complaint found to have been improperly disposed of.

• ₹5,000 per appeal: For every appeal handled in violation of prescribed requirements.

• ₹20 lakh maximum: The total penalty for these violations is capped at ₹20 lakh per quarter for each licensed or authorised service area.

Operators will also face penalties for submitting quarterly performance reports late. The disincentive can reach ₹5,000 per day for the first 15 days of delay and ₹20,000 per day thereafter, subject to a maximum of ₹10 lakh per instance per service area.

TRAI can also examine complaint-handling performance through audits, inspections, reports and consumer feedback.

24-Hour Complaint Support and Mandatory Human Assistance

A major change under the amended regulations is the requirement for telecom operators to keep their complaint centres operational 24 hours a day. This replaces the earlier 16-hour requirement.

Companies can provide assistance through human representatives, automated systems, AI agents or a combination of these technologies.

However, human support must remain available for at least 16 hours daily. Automated and AI-based services must also operate under appropriate human supervision.

Telecom operators will additionally have to inform customers whenever they are interacting with an AI agent.

Consumers can register complaints, appeals and service requests through their telecom operator's mobile application, in addition to existing channels such as websites and customer-care centres.

TRAI Changes the Consumer Complaint and Appeal Process

The amended regulations also introduce changes to the timelines and mechanisms used to resolve consumer grievances.

Consumers will now have 15 days to appeal against the disposal of a complaint, compared with the earlier 30-day period. Telecom operators' appellate authorities must communicate their final decisions within 15 days of receiving an appeal.

The earlier advisory committee mechanism for resolving appeals has been discontinued. Instead, operators must establish Consumer Grievance Redressal Oversight Committees involving service-provider representatives and registered consumer organisations.

Companies will also need to:

• Conduct online feedback surveys after complaints and appeals are closed.

• Publish consumer feedback results every quarter.

• Submit quarterly grievance reports to their CEO or board of directors.

• Provide accessible complaint-handling facilities for persons with disabilities through websites, applications and support channels.

These requirements are intended to improve transparency and make complaint resolution more accountable.

What Are TRAI's Proposed AI Guidelines for Telecom Companies?

On October 30, TRAI released draft guidelines covering the responsible use of AI in telecommunications. The proposed framework seeks to ensure that companies deploying AI have suitable governance, risk-management and accountability arrangements.

The draft includes several important requirements.

AI Risk Classification

AI systems would be categorised as high-risk, medium-risk or low-risk, depending on their importance to telecom operations, potential impact on consumers and influence on service delivery.

Mandatory Human Oversight

Applicable telecom entities would need an internal AI policy approved by their board or equivalent governing body. Designated officers would oversee AI deployment and ensure appropriate supervision.

AI Incident Reporting

Companies would be required to maintain a central database of AI-related incidents, investigate reported problems and notify TRAI about critical- and high-severity incidents.

Consumer Protection and Accountability

Telecom operators would need mechanisms to address consumer complaints involving AI-related harm within a reasonable timeframe.

Importantly, companies would remain responsible for the outcomes of AI systems used in their operations, even when those systems are developed or supplied by third-party vendors.

The draft also proposes an AI Governance and Safety Committee to oversee the implementation of internal AI policies.

Stakeholders can submit their comments on the proposed guidelines until November 27, 2026.

Why Has TRAI Tightened Telecom Regulations?

The regulator's latest measures come amid rising consumer complaints and increasing reliance on digital platforms and automated customer-support systems.

According to figures cited in TRAI's consultation process, the regulator received 73,081 direct consumer complaints during 2025-26. This was higher than the 55,978 complaints recorded in 2024-25 and 44,733 in 2023-24.

The rising numbers highlight the need for stronger grievance-redressal mechanisms as telecom companies expand their use of AI and automation.

Through stricter complaint-handling requirements and proposed AI governance measures, TRAI aims to ensure that technological advancements do not come at the cost of consumer rights and accountability.

Conclusion

TRAI's latest telecom regulations introduce stronger penalties, round-the-clock complaint support and mandatory human supervision of automated services. Its proposed AI guidelines further seek to establish clear accountability for AI-related risks. Together, these measures could significantly change how telecom companies manage customer complaints and deploy AI technologies in India.