India's telecom regulator has stepped up its efforts to strengthen consumer protection and accountability in the sector, issuing stricter rules for handling customer complaints and proposing a framework to regulate the use of artificial intelligence (AI) in telecom networks and services.

The developments, announced within days of each other, come as telecom companies increasingly turn to automated systems and AI agents for customer support, network management and service delivery.

On November 2, the Telecom Regulatory Authority of India (TRAI) notified the Telecom Consumers Complaint Redressal (Fourth Amendment) Regulations, 2026, introducing financial disincentives of up to ₹20 lakh per quarter per licensed service area for telecom operators that improperly dispose of consumer complaints and appeals.

Separately, on October 30, the regulator released draft guidelines on the responsible use of AI in telecommunication networks and services, seeking stakeholder comments until November 27. Here is what the new rules mean for telecom companies and consumers. What are the new penalties for telecom companies?

Under the amended complaint-redressal regulations, telecom operators will face a financial disincentive of ₹1,000 for every complaint found to have been improperly disposed of and ₹5,000 for every appeal handled in violation of the prescribed rules.

The total financial disincentive for such violations is capped at ₹20 lakh per quarter for each licensed or authorised service area.

Operators will also face separate financial disincentives for failing to submit quarterly performance reports on time. These can go up to ₹5,000 per day for the first 15 days of delay and ₹20,000 per day thereafter, subject to a cap of ₹10 lakh per instance per service area.

The regulator can also periodically review grievance-redressal systems through audits, inspections, examination of performance reports and consumer feedback. 24-hour customer support, but human assistance mandatory One of the significant changes is the requirement for telecom operators to make their complaint centres available round the clock, replacing the earlier 16-hour arrangement.

Operators can use human representatives, automated systems, AI agents or a combination of these to provide customer support.

However, human assistance must be available for at least 16 hours every day. Technology-based solutions must also function under appropriate human oversight.

This means telecom companies can increasingly use AI to handle customer interactions, but cannot make their complaint-redressal systems entirely dependent on automated assistance. The amended rules also require consumers to be informed when they are interacting with an AI agent.

Consumers will additionally be able to complaints, appeals and service requests through their telecom operator's mobile application, alongside existing channels such as complaint centres and websites. How will the new rules change the complaint process?

TRAI has reduced the time available to consumers to appeal against the disposal of a complaint from 30 days to 15 days.

The appellate authority of the service provider will have to communicate its final decision within 15 days of receiving an appeal. The earlier advisory committee mechanism for resolving appeals has also been discontinued.

Instead, telecom operators will have to establish Consumer Grievance Redressal Oversight Committees to periodically review their complaint-redressal systems. These committees will include representatives of service providers and registered consumer organisations.

Operators will also have to conduct online feedback surveys after complaints and appeals are closed and publish the results quarterly.

Quarterly reports covering complaints, appeals and consumer feedback must be placed before the company's CEO or board of directors.

The amendments also provide for dedicated complaint-handling facilities for persons with disabilities, including accessible websites, applications and support channels. What are TRAI's proposed AI guidelines?

Separately, TRAI has released draft guidelines on the responsible use of AI in telecommunication networks and services. The proposed framework seeks to ensure that telecom companies deploying AI systems have appropriate governance, risk-management and accountability mechanisms in place.

Under the draft, telecom companies and other applicable authorised entities would have to formulate an internal AI policy approved by their board of directors or equivalent governing body. Some of the key proposals include: Risk classification: AI systems would be classified as high-risk, medium-risk or low-risk, depending on their significance to telecom networks, services, operational outcomes and potential consumer impact.

Human oversight: AI systems would have to operate under appropriate human supervision, with designated officers approving their use.

Incident reporting: Companies would have to maintain a central database of AI incidents, investigate them and report critical- and high-severity incidents to TRAI.

Consumer protection: Telecom companies would have to establish mechanisms to address AI-related harm reported by consumers within a reasonable timeframe.

Accountability: Telecom companies would remain accountable for the outcomes of AI systems used by them, even if those systems were developed or supplied by third-party vendors.

The draft also proposes the creation of an AI Governance and Safety Committee within applicable organisations to oversee the implementation of their internal AI policies. Stakeholders have until November 27 to submit their comments on the proposed guidelines. Why has TRAI tightened its rules?

The changes come against the backdrop of increasing consumer complaints and the growing use of digital channels to access telecom services.

According to TRAI data cited in its consultation process, the regulator received 73,081 direct consumer complaints in 2025-26, compared with 55,978 in 2024-25 and 44,733 in 2023-24.