Mahanagar Telephone Nigam Limited (MTNL) has received a financial penalty of Rs 8,00,000 from the Telecom Regulatory Authority of India (TRAI) for failing to meet Quality of Service (QoS) standards for wireless access services during June 2025. The company disclosed this regulatory action through a filing dated February 04, 2026, in compliance with SEBI LODR Regulations.

TRAI Order Details

TRAI issued the penalty order on February 03, 2026, under the Standards of Quality of Service of Access (Wireline and Wireless) and Broadband (Wireline and Wireless) Service Regulations, 2024. The violations specifically relate to MTNL's wireless access service performance for June 2025.

Quality of Service Violations

MTNL failed to meet critical QoS benchmarks across multiple parameters in its Delhi and Mumbai service areas. The most significant violations involved call setup success rates falling well below regulatory requirements.

Call Setup Performance Issues

Company's Response and Explanations

MTNL provided explanations for the QoS failures in response to TRAI's show cause notice dated September 17, 2025. The company attributed the poor call setup success rates to technical issues with deployed 3G systems and lack of explicit counters for accurate measurement.

For the geospatial coverage map violations, MTNL claimed compliance by providing website links. However, TRAI found these links non-functional and unable to display the required coverage information. The company cited server failures as the reason for non-availability of 2G maps and coverage data.

Financial Impact Assessment

MTNL has stated that the Rs 8,00,000 penalty will not have any material impact on its financial, operational, or other activities. The company must pay the penalty within 21 days of the order date through demand draft or electronic transfer to avoid additional interest charges.

Regulatory Framework

The penalty was imposed under Regulation 16 of the QoS regulations, which provides for financial disincentives up to Rs 1,00,000 per benchmark for first contraventions. TRAI's action also aligns with the license conditions that treat QoS violations as breaches of license terms and conditions.

MTNL's disclosure fulfills the requirements under Sub-Para 20 of Para A of Part A of Schedule III of SEBI LODR Regulations, which mandates listed entities to inform stock exchanges about regulatory penalties and fines.

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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.

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.

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.

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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