NEW DELHI : The Supreme Court on Wednesday struck down the telecom regulator's directive imposing penalty for call drops on telecom operators.The Apex court called the directive, "unconstitutional and arbitrary".The Supreme Court however also ruled that Parliament can make and enact a call drop compensation rule, adding that the authority of the Telecom Regulatory Authority of India (India) remains intact. It however questioned the regulator’s process of arriving at the call drop decision."It is a big win for the telecom industry," Rajan Mathews, the director general of telecom industry body, the Cellulars Operators Association of India told ET.He added that with the eight-month battle now over, it was time for the industry to work with the government as well as the telecom regulator to work on the real issues which had led to exacerbating the call drops in the country."We need to work on availability of cell sites, the spectrum issues and also fix the delay in the getting clearances," Mathews explained.Telecom stocks rose post the order but were mixed since then. Reliance communications and Idea Cellular’s stocks were up 1.62% and 1.24% on the Bombay Stock exchange to Rs 56.50 and Rs 114.30, respectively. Bharti Airtel was 0.18% down to Rs 368.20.The telecom regulator last October had imposed a penalty of Rs 1 per call dropped with a maximum penalty of Rs 3 per day on telecom operators for each call dropped on account of an error on the part of the telecom operator.Telecom companies had cried foul over the directive, firstly by saying that the regulator had no authority to levy such penalty and secondly, by saying that it wasn't possible to seggregate the reasons for call drops. Trai had said that the telcos had under invested in networks in an effort to improve profitability, a charge the telcos had denied.The Trai had further asked telcos to message subscribers within four hours of the call drop to inform the customer about the details of amount credited to his/heraccount. For post-paid consumers, the regulator had asked telcos to give details of the amount credited in the next bill.