Showing posts with label COAI. Show all posts
Showing posts with label COAI. Show all posts

Tuesday, 24 March 2020

Coronavirus impact: As data usage jumps, telcos ask govt for more spectrum

Telecom operators have demanded additional spectrum urgently on a temporary basis in order to cope with the unprecedented spurt in data usage as a result of “work from home” and “self-quarantine” at homes across the country due to the coronavirus (Covid-19) outbreak.
In a letter to the department of telecommunications (DoT), the Cellular Operators Association of India (COAI) has demanded additional spectrum both for “access and backhaul microwave” for a short term and temporarily as they need to augment their capacity to meet the growing demand. COAI director general Rajan Matthew however says they are still waiting for a response from the government.

The telecom association has also asked DoT for expedited permission for tower enhancement from states (as thy ramp up capacity), extension in minimum roll out timelines by six months and permission for go for digital acquisition of new customers instead of physical documentation, especially as there has been a sharp rise in acquisition of new customers. This will reduce the time to on-board new subscribers.
According to BofA Global Research India’s fixed broadband penetration is only 6 per cent so the bulk of the pressure of the work for home traffic (which is around 70 per cent of the total traffic) is expected to be on the cellular network. India has only 19 million fixed broadband users compared to 630 million (3g and 4G) users. Analysts say that many operators like Airtel are not charging for installation or security for new customers of fixed broadband, while ACT has upgraded speed to 300 Mbps at no extra cost and even BSNL is offering free of charge broadband for one month for those who have a landline of their company already.
However, the demand from COAI is valid considering the fact that the Federal Communications Commission in the US has granted AT&T, Verizon, T-Mobile and US Cellular temporary access to more spectrum so that they can increase their wireless capacity for around 60 days. The DoT which is planning to go for a mega spectrum auction has no shortage of airwaves in various bands from 700, 1800, apart from the available 5G spectrum which it could release in times of crises.
Mobile networks have been working at 60 per cent to 65 per cent capacity but thanks to coronavirus have seen their traffic go up by 10 per cent but that seems to be moving further up. While COAI says that it still has capacity available, a long lockdown of cities as well as offices could lead to more pressure on the network and might require more temporary capacity.
COAI has already received positive response from OTT platforms who consume about 30 per cent of their network capacity to use lesser bandwidth. Companies like Hotstar (with 300 million customers), Zee5, and Viacom 18 controlled Voot have already committed that they will use lesser capacity and if need arises shift customers from high definition to standard definition services to achieve that.

Wednesday, 29 January 2020

No case for differential treatment to PSUs on AGR dues matter, says COAI

Industry body COAIsaid on Wednesday that AGR formula being applied on mobile operators should be applicable on all other categories of telecom licences and there can be no differential treatment for relevant PSUs in this regard.
"The question is are you a telecom licencee and if you are then the terms of the licence apply. The court has looked at the terms of the licence, so that same principle then should be applied on every licensed agreement, including for relevant PSUs," Cellular Operators Association of India (COAI) Director General, Rajan Mathews told PTI.

Fifteen telecom companies owe the government Rs 92,642 crore in unpaid licence fee and another Rs 55,054 crore in outstanding spectrum usage charges. These liabilities arose after the Supreme Court in October last year held that non-core revenues have to be considered for calculating statutory dues from Adjusted Gross Revenue (AGR).
In the case of Bharti Airtel, the liabilities added up to nearly Rs 35,586 crore, of which Rs 21,682 crore is licence fee and another Rs 13,904.01 crore is the spectrum usage charge dues (not including the dues of Telenor and Tata Teleservices). Vodafone Idea -- which is staring at unpaid statutory dues of Rs 53,038 crore, including Rs 24,729 crore of spectrum dues and Rs 28,309 crore in licence fee -- has already warned of shut down if no relief is given.
Bharti Airtel, Vodafone Idea Ltd, and Tata Teleservices have, meanwhile, jointly filed a modification application in the Supreme Court seeking more time to pay the statutory dues. The plea for relief on the payment schedule came after a three-judge Supreme Court bench headed by Justice Arun Mishra, earlier this month, dismissed the review petitions filed by telecom companies against the apex court's October 24, 2019 verdict.
The telecom department has also estimated another Rs 2.4 lakh crore in liability for non-telecom companies such as state-owned gas utility GAIL India Ltd and power transmission firm PowerGrid, which had taken licences to trade broadband on optic fibre running along their pipelines and transmission lines.
The DoT has sought additional license fee of Rs 1.72 lakh crore from gas utility GAIL India Ltd, Rs 48,000 crore from OIL, around Rs 22,000 crore from Power Grid Corporation (PowerGrid), and has raised similar demands from RailTel and other public sector undertakings (PSUs).
PSUs including Oil India Ltd (OIL) and Power Grid Corporation have filed a clarificatory/modificatory petition in the Supreme Court against demands raised by the telecom department.