The Hindu Business Line : Basic operators back unified licensing

THE Telecom Regulatory Authority of India (TRAI) has received conflicting opinions from private cellular and basic operators on the unified licensing regime that it is evaluating.

In response to the consultation paper it had issued for framing its recommendations on the issue, while the cellular operators have trashed the concept, basic operators have welcomed the move stating that it would address the complex issues that have been plaguing the sector for the past couple of years.

The Cellular Operators Association of India (COAI) in its letter to the authority has contended the issue is outside its jurisdiction. The Association of Basic Telecom Operators (ABTO) has said the TRAI proposal will increase teledensity and have net incremental effect on GDP. "Unified licensing would lead to elimination of uncertainty and duplication of networks through optimum utilisation of resources. It will enable service providers to make more investments in infrastructure leading to improved quality and availability of services. This will significantly reduce costs to the consumer and push teledensity higher," the ABTO letter notes.

Most of the developed and many developing countries are rapidly adopting a framework conducive to a convergent regime. The latest example is that of the European Union which has a comprehensive, technology-neutral approach to regulation, it has stated.

Going a step further, ABTO has also proposed its own roadmap for bringing in a unified licence regime for basic, cellular, long distance operators and ISPs.

"All new lines should operate under the unified licensing regime, while existing operators should have the option of either migrating to a unified licensing regime, to go in for a pan-India licence or continue under the present terms and conditions. Ideally there should be no entry fee for migration to the new regime. All composite payments should be taken as a full and final consideration for moving to this system."

According to industry sources, with both disagreeing with each other the sector should brace itself up for another round of litigations when TRAI finalises its recommendations on the issue.

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