Mobile tower fraud agents are hampering telecom infrastructure growth

The telecom industry is leaving no stones unturned in providing uninterrupted connectivity and efficient delivery of communication services to one and all. For latest technology including 4G to flourish, higher frequency bands are required, which translates to more tower support. Densification of towers is one of the essential tasks to be undertaken to create a thriving digital infrastructure. Telecom operators are often blamed for poor connectivity and quality of services. While the operators are working continuously to improve the infrastructure, including installing more towers to deliver seamless connectivity, they are grappling with the challenge of tower frauds, which is hampering the genuine efforts of the industry. Many a times genuine representatives ‘face the music’ at locations where such quacks already have duped people.

The Modus Operandi in such cases is that fake or unauthorized representatives get in touch with consumers and allure them with heavy rental income by installing towers at their premises. To instill faith they present fake leaflets, use fake letterheads of the telecom companies, TRAI, etc. This provides further confidence to them without knowing that they are being pulled into the net.

These tower fraudsters work as speed breakers in the rapid expansion of telecom infrastructure that is essential for providing basic as well as high-end digital services within the vicinity and support enterprise customers of the operators who are expanding through their online business models.  This also hampers the effectiveness of digital initiatives of the central as well as state governments in far-flung areas. There are more than 5,90,000 mobile towers that provide uninterrupted connectivity in the country.

The fraudsters offer lucrative rentals against real estate for tower installation as well as a waiver of statutory fees that goes to local bodies in such cases.  In lieu, they ask for an upfront security deposit in bank accounts of companies under the banner of which these rogue elements work. Since these are bank transactions against which they get receipts as well, there is hardly any reason to doubt the authenticity. These receipts and bank accounts are of the firms which are intentionally opened for a short period with very vague details. Once they achieve their targets and feel they can’t further fool the people, they wind up the operations quietly and swindle away the money.

It becomes very difficult for ordinary people to trace these fraudsters. Such cases are high in states like Uttar Pradesh, West Bengal, Tamil Nadu, Maharashtra among others. By the time the victims are able to understand, its already too late.  Thanks to some digital exposure across the country, they are able to reach out to TRAI, Operators and sometimes media.  But, it is already too late to do anything effective by then.

In December 2019, TRAI had received approximately 15 complaints per day regarding telecom tower fraud. As a result, in December 2019, the regulator had informed the telecom sector that the number of complaints in the previous two months is about the same. Further, the regulator had suggested that victims should take up the matter with the local law enforcement agencies.

TRAI is conducting special awareness campaigns, cautioning the public of tower fraudsters across many cities in India. Concerned with the growing tower frauds, the telecom regulator has advertised warnings to people about this growing menace. To clarify, the misinformation perpetrated by tower frauds, TRAI has reiterated that the regulator is not directly or indirectly involved in leasing/renting of premises for installing mobile towers.

The public should be aware that Infrastructure Providers (Category-I) are licensed to install towers. These are companies such as   Indus Towers Ltd, ATC, Bharti Infratel, etc. However, even such companies require clearance from an “Appropriate authority”, which means the Central Government, respective State Governments, local authority or such authority, body, company or institution incorporated or established by the Central Government or the State Government, etc.

A National Consumer Helpline is available for the public to call from anywhere in India at 14404 or 1800-11-4000. People can also register the complaint at www.consumerhelpline.gov.in. The people at large need to be aware of rules to install towers, so that they do not fall prey to tower fraudsters.

By Rajan S Mathews, Director General, COAI