The Cellular Operators Association of India, the Association of Unified Telecom Service Providers of India and the Towers and Infrastructure Providers’ Association have reacted strongly to the Telecom Equipment Manufacturers? Association of India?s views on diesel consumption by tower sites.

The industry bodies have issued a joint media statement in this context.

The statement read, ?It is quite unfortunate that TEMA is trying to sensationalise the issue in a highly irresponsible and mischievous manner and the statements made by TEMA are misleading, uncalled for, and devoid of any merit. It is analogous to suggesting that railways run trains on diesel to exploit subsidies!?

?They are unnecessarily trying to imply that telecom operators pursue subsidies and profits relentlessly. This is simply not the case. India?s telecom operators provide an infrastructure that is central to India?s economy and contribute significantly to the GDP of the economy. They help deliver world class mobile services at the lowest prices in the world despite lowest revenues per user.?

?Any infrastructure sector, transport, railways or telecom, have little reason to use or prefer diesel fuel if viable alternatives exist. The use of diesel is forced on tower companies by the acute shortage of electricity from the grid especially in rural areas. Diesel imposes huge costs as it accounts for over 30 per cent of the operational expenses of the tower companies. Companies derive no competitive or other advantage from diesel.?

?Need to distinguish between essential and non-essential use of diesel. It is difficult to justify use of harmful fuels when cleaner and affordable options exist or, if the use of such fuel is for non-essential purposes, such as air-conditioning and lighting at a late-night party or power for an advertising billboard as opposed to services like trains, telephones, hospitals, movement of food, security, etc. are absolutely essential and must be available 24×7 without interruption or deterioration in quality of service. ?

?On the contrary, the telecom industry recognises the importance of evolving cleaner alternatives to diesel. The cellular industry was one of the first to start widely using solar panels and wind energy applications and continues to do so. In addition, the telecom service providers and tower infrastructure companies have already taken a lot of initiatives to reduce dependence on diesel, such as:

  • Reduction of power consumption by electronic components in the Base Stations which has reduced diesel consumption by almost 20 per cent per site
  • Use of batteries – all operators first use battery power and when these run out, switch to diesel generators
  • Solar and wind power in sites, greater use of outdoor sites that do not need air conditioning, etc.
  • Working extensively with Ministry of New and Renewal Energy Sources (MNRE) that Renewable Energy Service Companies (RESCOs) to prioritise and expedite supply of clean energy for telecom towers

?TEMA?s submission hides commercial interests of its member companies. It acknowledges power cuts across India ranging from 7-21 hours but willfully distorts facts on the ground. This is presumably because some of the TEMA members have vested commercial interests that promote alternate technologies that are yet to be deployed and proven and which members would benefit from pushing the infrastructure and service providers to adopt such unproven technologies through the imposition of the proposed levy on diesel.?

?TEMA and its members have lobbied hard to get the government to pass a preferential equipment purchase mandate where service operators are mandate to purchase up to 80% of their equipment needs from ?indigenous manufacturers? such as those who are members of TEMA.  After having lobbied for such largesse from the government, it appears incongruous to turn around and ask that the industry that is expected to provide this profitability to their members should now be penalized financially. It appears to be a case of ?cutting off one?s nose to spite one?s face?!?

?It is totally incorrect to hold the telecom players responsible for and penalize them for a systemic failure unrelated to their functioning. It is erroneous to suggest, especially in the absence of any evidence of operations of comparable size and scope that telecom operators in India are rejecting or ignoring cheaper or cleaner options as TEMA’s statements imply.?