Consumer in focus: DoT & Trai could sprint telcos’ hopes of mounted flooring worth

The Department of Telecommunications (DoT) is just not in favour of permitting or fixing a flooring worth for voice or knowledge providers supplied by telcos as there was substantial hike in tariffs by the operators in latest months with none corresponding drop in consumer numbers, senior authorities officers advised The Indian Express.
A last resolution on the difficulty is prone to be taken after the spectrum public sale in March. The DoT, nevertheless, doesn’t wish to be seen taking an anti-consumer stance and subsequently could keep away from the ground pricing altogether, officers stated.
“We have a forbearance model. In the past few months, the data consumption for all players has been very high…pattern is likely to continue now. They (telcos) have raised tariffs also in recent months,” an official stated.
Apart from the DoT, the Telecom Regulatory Authority of India (Trai) can also be learnt to have supported the thought of not fixing a flooring worth for the providers, sources stated.
Though Trai had began consultations on the difficulty of flooring pricing in December final yr, a nationwide lockdown in March this yr, put in place to stop the unfold of Covid-19, introduced these open-house debates to a halt.

ExplainedLong-term productiveness is keyDemand for flooring pricing for knowledge and voice providers has been unanimously supported by telecom operators, and business representatives too have requested expedition of the method. However, authorities have identified that knowledge consumption has been fairly excessive and telcos have raised tariffs in latest months. While the business has pressed for the necessity for a flooring worth, doing so might not be as productive till it’s for the long term, coverage specialists stated.

Former Trai Chairperson RS Sharma, who had kick-started discussions, nevertheless, retired in September this yr, with out having achieved the finality on this difficulty.
It is now seemingly, officers stated, that the brand new chairperson P D Vaghela could both begin a contemporary session course of or drop the matter altogether primarily based on his conferences with DoT officers.
The difficulty of flooring pricing for knowledge in addition to voice providers has been unanimously supported by the three huge non-public telcos, Reliance Jio Infocomm, Bharti Airtel and Vi (Vodafone Idea). Industry physique Cellular Operators Association of India (COAI), which represents the three telcos, has additionally in latest months written to the Trai to expedite the method of fixing a flooring worth for each knowledge and name providers, however with none success.
In its letter to the DoT, the business physique had stated that the demand for a flooring worth on each knowledge and voice providers was a “legitimate” demand given the monetary well being of the telecom gamers.
“Given the financial pressure on the sector and the fact that ARPU (average revenue per user) and tariffs of the Indian telecom sector are the lowest in the world, floor pricing is imperative to ensure that the sector is sustainable,” COAI had stated in its letter.
Of the three, each Bharti Airtel and Vi are below strain following the Supreme Court’s October 2019 ruling on adjusted gross income (AGR).
The court docket had dominated that Bharti Airtel and Vi should pay long-pending AGR dues, the penalty for non-payment over the previous years, and the curiosity on penalty for non-payment.
Bharti Airtel owes DoT greater than Rs 43,000 crore, of which it has paid near Rs 18,000 crore till now, whereas Vi owes greater than Rs 58,000 crore, of which it has paid almost Rs 6,900 crore.