Regulator Profits from Penalties

The provision allows the Authority to retain a percentage of penalties collected from operators for "the Authority's own use" (subsection i), creating a direct financial incentive to maximize enforcement actions rather than foster innovation. This structural conflict of interest, combined with vague rate-setting standards and excessive daily penalties (10,000 penalty units per day for information delays), creates regulatory uncertainty that deters investment in innovative digital services. The price floor mechanism requiring minimum rates for international traffic contradicts competitive market principles essential for digital innovation, while the regulator's profit motive discourages the regulatory flexibility needed to support emerging business models and market experimentation.