30 September 2024
The Cellular Operators Association of India (COAI) is not happy with the TRAI's recommendations on the framework for service authorisations under the Telecom Act, 2023.
COAI wants the existing way or the contractual nature of the licenses to continue in the telecom sector. The Department of Telecommunications (DoT) and telecom operators go into a legally binding contract when the telecom licenses are issued. These agreements outline the rights, obligations and operational parameters for everyone involved. However, now the government is looking to grant service authorisation under Section 3(1) of the Telecommunications Act, 2023, instead of entering into an agreement with the entity.
According to COAI, this - "....is without any valid justification and goes against the position of TSPs, while also undermining the current regime that has worked successfully for more than 3 decades - bringing enormous inflow of investments and growth in the sector."
The association has been advocating for the reduction in license fees and had suggested the present rate to be reduced from 3% to 0.5-1%. COAI has also requested the government to abolish the universal service obligation fund (USOF) or at least pause it until the existing funds have been used. However, this has not been recommended by TRAI yet.
"Furthermore, our concern that OTT Communication Services were excluded under the new authorization as Access Service is a great concern as this omission perpetuates an uneven competitive landscape, as the Telecom Service Providers (TSPs) continue to bear the weight of extensive compliance and security requirements," said COAI.
