According to the Cellular Operators’ Association of India (COAI), floor price fixation is absolutely critical and need of the hour, given the major financial stress in the telecom industry.
The association said that floor prices need to be fixed for data only for an interim period, say two years, and that voice calls and tariffs can be excluded from this.Despite the financial constraints faced by the sector during the pandemic, the telecom service providers continued to plough in significant investments and provide seamless network connectivity to Indians, COAI argued. Further, it added that it is important to understand that the telcos have incurred losses because of the downward pricing trend of data tariffs. Revenue generation is now essential to sustain their financial health.
In addition, the COAI said that it has made regular pleas for setting the floor prices, and noted that the Telecom Regulatory Authority of India (TRAI) had also done a consultation with COAI over the issue.Floor prices must be fixed to provide some relief from the immense cost burden.
