Categories: Business

telecom companies approach TRAI seeking early decision on floor price issue

Photo: GOOGLE

Telecom Sector

new Delhi. Telecom companies have urged the Telecom Regulatory Authority of India to expedite the implementation of the proposed system of fixing minimum rates of services. Private sector telecom services companies said that the minimum price or floor price would be a necessary step to strengthen the sector and keep companies in a position to pay spectrum and dues of adjusted gross revenue (AGR). A company will not be able to keep the value of the service below market competition when the minimum rate regime is implemented. After the arrival of Reliance Jio in the market, the rates of services have fallen.

The Cellular Operators Association of India (COAI) has written a letter to TRAI demanding an open discussion on the issue soon. COAI members include companies such as Bharti Airtel, Vodafone Idea and Reliance Jio. In this letter to TRAI chairman RS Sharma, COAI has said that given the financial pressure on the sector and the fact that the average revenue per customer (ARPU) and tariff rates in the Indian telecom sector are at the lowest level in the world, the minimum The price must be fixed. The letter said that the telecom sector has to pay the postponed spectrum payments and AGR dues. Also it is necessary to invest in world-class networks and services, so the minimum price should be fixed at the earliest to make the region sustainable.

COAI said that the industry wants the regulator to quickly decide on the minimum fee for data services. "We are aware that there are some hurdles in view of the situation arising out of Kovid-19 but the authority has now started conducting open discussion on various topics through online process," the letter said. In view of this, our request is that an open discussion on this issue should also be organized soon.

This post was published on May 24, 2020 5:29 pm

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