GSM industry body, the Cellular Operators Association of India (COAI) has criticised the government’s plan to appeal the Telecom Disputes Settlement & Appellate Tribunal?s (TDSAT) ruling that legalises intra-circle roaming (ICR) pacts for 3G services among operators. COAI is of the view that the move will lead to more turmoil in a sector already grappling with several legal and regulatory uncertainties.
Earlier in April 2014, TDSAT had overturned a ban on operators sharing high-speed, 3G networks. In addition, TDSAT also quashed the Rs 12 billion penalties imposed by the Department of Telecommunications (DoT) on Bharti Airtel, Vodafone India and Idea Cellular for getting into such 3G ICR pacts.
According to Rajan S Mathews, the director general of COAI,TDSAT has rightly noted that such 3G agreements would increase the gross revenue of both the provider and the seeker of the 3G network, and in turn the government, which gets a percentage share of the adjusted gross revenue of the license holders.
In a detailed ruling, the TDSAT has criticised the basis on which the DoT had barred the 3G ICR roaming agreements, saying that even prior to the auction of 3G frequencies in 2010, the terms of the unified access service (UAS) license allowed such sharing.
While the impact of the tribunal’s ruling has been positive for the industry as it will lead to more efficient use of spectrum and higher revenue generation, any action to counter the order might be against the interest of the consumers, who would face uncertainty in the services being provided to them.
Presently, DoT is obtaining a legal view to further proceed on the matter.
