Indian telecom sector regulator, the Telecom Regulatory Authority of India (TRAI) has introduced new rules aimed at ensuring transparency in broadband service in the country.

The TRAI has introduced rules and penalties to make sure that the broadband service providers honestly report the quality of their service and meet the set compliance regulations set by the authorities. The regulator has released its new Quality of Service of Broadband Service (Amendment) Regulations, 2012 allowing it to impose penalties on defaulters.

The new rules sad, "If the compliance report furnished by a service provider providing broadband service, is false, it shall, without prejudice to the terms and conditions of its license, be liable to pay an amount, by way of financial disincentive, not exceeding INR 1 million per parameter."

If the service provider does not meet the benchmark quality of service (QoS) for broadband services in the country, the company will be liable to pay up to INR 50,000 per incident. The regulator said that the new regulations will come into effect from 1 January, 2013.

TRAI said that the new penalties will act as financial disincentive for broadband service providers who do not meet the benchmark set by the authorities.