TRAI published its comments on the draft NTP 2012 announced by the Telecom minister on February 15, 2012. Most of their views like doing away with the concept of roaming charges and inter-connection charges are consistent with that indicated before.
The key comments by the TRAI are as follows,
- Move eventually towards achieving One Nation –One License by providing for full Mobile Number Portability and removal of roaming charges, decision on both of which will be taken by TRAI
- TRAI to consider minimizing inter operator costs in fixing tariff so as to facilitate affordability of tariff to the consumers
- TRAI to periodically fix the minimum download speeds of broadband connections
- To enable and enforce the VoIP facility including mandating interconnection between ISP and access providers, so as to enhance affordability to the consumers
- Ensure adequate availability of globally harmonized spectrum including through Audit and refarming.
- Make available additional 500 MHz spectrum for telecommunications services by the year 2017 and another 300 MHz by 2020. (A roadmap of spectrum availability and auction timelines would help operators in planning their requirements better and would lead to more rational spectrum prices in auction and better cash flow management).
- Promote sharing of both passive and active infrastructure, based on the recommendations of TRAI. (Presently, only passive infrastructure sharing is permitted. If sharing of active infrastructure is permitted it would lead to capex savings. But this would depend on the rules set for sharing of active infrastructure. The DoT is permitting spectrum sharing as well in the new policy but the rules are so stringent that it wouldn’t be viable for operators to share).
- Introduce Mobile Virtual Network Operators (MVNO) in the country, based on recommendations of TRAI. (This would lead to more competition. But in the recently announced policy guidelines the government has not permitted spectrum leasing and trading. Thus, introduction of MVNOs would happen at a later date).
- Provide appropriate Tax benefits to Telecom infrastructure provider companies. (The towercos currently pay full corporate tax. If they are provided tax benefits then it could get passed on to operators. But it remains to be seen if this would happen by bringing towercos under licensing regime. If 8% license fee is imposed on towercos and tax benefits are provided then there would be negative impact)
- Restructure taxes and duties such that indigenous manufacturers are not disadvantaged vis-a-vis imported products and components and put in place a stable tax regime and provide income tax holiday for 10 years to domestic telecom manufacturing.
- Appropriately restructure the Public Sector Undertakings, under the Department of Telecommunications, in terms of management, manpower and equity.