Telcos weep ‘dissatisfaction’ at Trai’s spectrum suggestions
BRAND-NEW DELHI: A day after regulator Trai offered recommendations for a mega spectrum auction with a near 40% price cut throughout some frequencies to stimulate 5G telephone systems, the mobile operators declined to reveal enthusiasm with the proposals, stating they were “disappointed” by the steps and complaining that the reserve rates are “expensive”.
Cellular Operators Association of India (COAI), the grouping representing leading private operators such as Reliance Jio, Airtel and Vodafone Concept, said that the market’s plea for a sharper cut in reserve costs was ignored by the regulator as the latter also decided to charge additional for the 10 extra years of spectrum that had actually been approved by the telecom ministry.
“COAI is dissatisfied by Trai’s recommendations for auction of 5G spectrum bands. Provide the current influential reforms for the telecom sector announced by the Federal government, these suggestions are one step in reverse than forward towards developing a digitally-connected India. The spectrum rates advised by Trai is expensive,” COAI stated.
The recommendations are currently being studied by the telecom ministry, prior to they are taken up by the Union Cabinet, and COAI feels that its views would be factored in prior to a last approval.
COAI said that the spectrum rates recommended by Trai will dissuade the industry from going for aggressive network rollouts which requires massive financial investments.
“Likewise, by presenting obligatory rollout responsibilities for 5G networks without even factoring the substantial expense of such rollout, Trai has actually delinked itself from reality and is running counter to the federal government’s efforts of boosting ease of working,” COAI stated.
It also challenged Trai’s suggestion of permitting private captive networks for enterprises, stating the regulator is “considerably changing the industry characteristics and harming the monetary health of the market” rather than improving it.
“Telecom service companies have and going forward will invest lakhs of crore of rupees in network rollouts. Enterprise services constitute 30-40% of the market’s total incomes. Private networks when again disincentivizes the telecom industry to purchase networks and continue paying high levies and taxes,” the market body stated.
Trai chairman PD Vaghela had on Monday informed TOI said that the regulator had performed a comprehensive review of the views of all stakeholders before bring out the important recommendations. “We have actually thought about new data and info, while also analyzing the industry and other stakeholders’ comments. We feel that these suggestions are healthy for the country’s telecom sector, though the final view will be taken by the federal government,” Vaghela had actually said.
Published at Tue, 12 Apr 2022 17:34:52 +0000