MTNL Receives Fresh Rs 10 Lakh TRAI Penalty for Quality of Service Violations
MTNL disclosed receiving fresh TRAI penalties totaling Rs 10,00,000 for quality of service violations across wireless and wireline services. The penalties cover May 2025 wireless service failures in Delhi and Mumbai, and wireline service deficiencies in Mumbai for the quarter ending June 2025, with issues ranging from poor call success rates to delayed fault repairs.

*this image is generated using AI for illustrative purposes only.
Mahanagar Telephone Nigam Limited (MTNL) has received additional penalty orders from the Telecom Regulatory Authority of India (TRAI) for quality of service compliance violations. The company disclosed on February 2, 2026, receiving orders for financial disincentives totaling Rs 10,00,000 for violations in May 2025 and the quarter ending June 2025.
Latest TRAI Penalty Details
TRAI issued orders dated February 2, 2026, imposing financial disincentives on MTNL for contravening provisions of the Standards of Quality of Service of Access (Wireline and Wireless) and Broadband (Wireline and Wireless) Service Regulations, 2024. The penalties cover separate violations for wireless and wireline services.
| Service Type: | Period | Penalty Amount | LSA Coverage |
|---|---|---|---|
| Wireless Access Service | May 2025 | Rs 4,00,000 | Delhi, Mumbai |
| Wireline Access Service | Quarter ending June 2025 | Rs 6,00,000 | Mumbai |
| Total Latest Penalty | Rs 10,00,000 |
Wireless Service Violations - May 2025
For wireless access services in May 2025, MTNL failed to meet quality benchmarks across Delhi and Mumbai circles. The company's call set-up success rate in Delhi dropped to 71.81%, significantly below the required 98% benchmark. Additionally, despite reporting 100% compliance, MTNL failed to publish functional geospatial coverage maps on its website for both service areas.
| Parameter: | Delhi Performance | Mumbai Performance | Benchmark |
|---|---|---|---|
| Call Set-up Success Rate | 71.81% | - | ≥ 98% |
| Coverage Map Availability | Non-functional link | 100% reported | ≥ 99% |
| Financial Impact | Rs 2,00,000 | Rs 2,00,000 |
Wireline Service Failures - Quarter Ending June 2025
The wireline service violations in Mumbai circle revealed multiple operational deficiencies. MTNL's service provisioning within seven working days achieved only 85.59% against the 98% benchmark. Fault repair performance was particularly poor, with next-day repairs at 50.10% and three-day repairs at 59.60%, both falling short of required standards.
| Parameter: | Mumbai Performance | Benchmark | Penalty |
|---|---|---|---|
| Service Provision (7 days) | 85.59% | ≥ 98% | Rs 1,00,000 |
| Fault Repair (Next Day) | 50.10% | ≥ 85% | Rs 1,00,000 |
| Fault Repair (3 Days) | 59.60% | ≥ 99% | Rs 1,00,000 |
| Mean Time to Repair | 131.24 hours | ≤ 10 hours | Rs 1,00,000 |
| Service Termination | 99.47% | 100% | Rs 1,00,000 |
| Deposit Refund | 83.64% | 100% | Rs 1,00,000 |
Company Response and Regulatory Process
MTNL attributed wireless service issues to technical constraints in 3G performance systems and difficulties in data retrieval despite multiple iterations with original equipment manufacturers. For wireline services, the company cited infrastructure challenges including cable damage from construction activities, restricted access to sensitive areas, and customer-related issues.
TRAI found these explanations unsatisfactory, noting the lack of documentary evidence to substantiate claims. The authority emphasized that meeting quality benchmarks remains the service provider's responsibility regardless of operational challenges.
Payment Terms and Financial Impact
MTNL must pay both penalties within twenty-one days through demand draft or electronic transfer to TRAI's designated Union Bank of India account. Failure to pay within the stipulated timeframe will attract interest at 2% above State Bank of India's one-year Marginal Cost of Lending Rate, compounded annually.
The company stated that these penalties will not have material impact on its financial, operational, or other activities. This disclosure was made under Regulation 30 of SEBI (LODR) Regulations, 2015, specifically Sub-Para 20 of Para A of Part A of Schedule III.
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Historical Stock Returns for Mahanagar Telephone Nigam
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.11% | -5.88% | -8.11% | -30.85% | -36.64% | +148.89% |


































