Telecom Sector Needs Deep Routed Action, Says TV Ramachandran

There is no doubt that the government has been trying to resolve ongoing issues in the telecom industry by issuing new regulations. But, the president of Broadband India Forum, TV Ramachandran, believes that there is a need for deep routed actions.

"The telecom sector needs a deep routed action these superficial measures will not suffice," he told Gizbot in an interaction. Adding to that, "2 or 3 percent drop in license-free and giving two years moratorium on spectrum payments will not help the sector in the long-run. The sector needs a major policy action. It needs to be profitable and viable."

For the unaware, the government has recently given two years moratorium on spectrum payment to telecom operators. This means the operators can defer payments for two financial year i.e 2020-21 & 2021-22, as the sector is under a lot of pressure due to ongoing competition and predatory pricing.

The two-year relief will help Bharti Airtel, Vodafone Idea, Reliance Jio to save Rs. 42,000 crore. And if you look at the estimates then, Vodafone Idea will be benefited by Rs. 23,920 crore, Airtel can save Rs.11, 746 crore, and Reliance Jio can save 6,670 crore, from this relief.

"The last spectrum auction happened in 2016, where the government sold only 40 percent of the total spectrum. So, I believe the pricing of spectrum auction is also an issue and the government needs to look at it," he replied when asked about the pricing of spectrum.

Meanwhile, TRAI is now planning to fix the floor pricing for calls and the internet. The development comes after three operators, raised tariff prices by 42 percent from December 3. The regulator is looking for comments on the regulation of telecom tariffs and to fix a floor price. Apart from that, TRAI has decided to continue 6 paise interconnection usage charges (till January 2021).