The Hindu Business Line : DoT seeks TRAI views on revoking rollout obligation

The Department of Telecom (DoT) has sought the views of the Telecom Regulatory Authority of India on the proposal from private cellular operators to abolish rollout obligation stipulated in the licence conditions.

The Cellular Operators' Association of India had written to the Ministry of Communications seeking a review of the rollout obligation for mobile operators, given the fact that similar obligations for fixed line telephone operators and long-distance service providers have been removed.

DoT has, however, asked the telecom regulator to look into the issue keeping in mind the "poor quality of service" being offered by the cellular operators.

As per the existing norms, cellular operators have to cover at least 10 per cent of the district headquarters in the first year and 50 per cent of the district within three years of effective date of licence.

The COAI has said that the rollout obligations may have been necessary in the early days of telecom, when private service providers were yet to demonstrate their commitment to the growth of telecom services.

However, in the current telecom environment of intense competition, where coverage has become a competitive issue and operators are vying with each other to reach out to newer markets, such rollout stipulations have lost their relevance.

"Rollout is now driven by market compulsions", it said. It added: "It may also be noted that over the past few years, the Government has waived the rollout obligations, first for fixed service providers and then for national long-distance operators. Under these circumstances, it is unfair for rollout obligations to continue to be applicable only to cellular operators."