MTNL Ordered to Pay ₹1 Million Fine for Service Quality Shortfalls in Delhi-Mumbai

Mahanagar Telephone Nigam Ltd (MTNL), the state-run telecom serving Delhi and Mumbai, faces a ₹10 lakh penalty from TRAI for breaching Quality of Service (QoS) standards in May-June 2025.

The regulator flagged MTNL's call success rate at just 71.81% against the mandated 90%, alongside sluggish fault repair times and inadequate geospatial coverage disclosures. This follows prior fines like ₹11 lakh for April 2025 PMR non-submission and NSE/BSE penalties for board norms.

MTNL's woes persist amid debt crisis (₹8,585 Cr dues), asset monetization efforts. QoS breaches under TRAI's 2024 Regulations trigger escalating disincentives (₹1-10 lakh). Company assures negligible financial/operational impact, complying via demand draft within 21 days.
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Delhi High Court recently ordered fresh hearings on MTNL's ₹1 Bn arbitral disputes. Revival hinges on DoT revival package, 4G/5G upgrades. Shares hover low amid uncertainty.

Key Highlights

• Penalty Amount: ₹10 lakh (₹1 million).
• Period: May and June 2025.
• Main Violation: Call success rate 71.81% (below 90% benchmark).
• Other Issues: Slow fault repair rates, coverage reporting failures.
• Order Date: Recent TRAI directive (post-Jan 2026 review).
• Payment Terms: Within 21 days; interest if delayed.
• Impact: Minimal on operations, per MTNL disclosure.

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Sources: PSU Connect, MarketScreener, Prysm, TRAI filings