Page 130 - SAMENA Trends - March 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

The regulator highlighted that the remaining 100MHz in will now prepare the terms and conditions for the draft
the band will be distributed at a later stage, as the PTA authorizations and open a new public consultation on
would first monitor the development of 5G networks the licenses before their formal award.
and the supply of 5G services in the near-term. The PTA (March 11, 2020) commsupdate.com

The Indian government, telecom industry stakeholders the shutdown of non-essential services. COAI head
and regulatory authorities have proposed a series of Rajan Matthews was quoted as saying: ‘No business
measures to adapt to new challenges presented by can hope to succeed without this focus on the interest
the COVID-19 pandemic, although communication of their customers first … I am sure they will consider
India and cooperation between agencies remains somewhat the request carefully and work with the government
to take appropriate action.’ In a similar move, the
strained. Following a request from sector lobby group
the Cellular Operators Association of India (COAI) Telecom Regulatory Authority of India (TRAI) has asked
for the allocation of additional spectrum to wireless operators to extend the validity of pre-paid services, as
providers to ensure continued connectivity and service users may struggle to extend their plan or get top-ups
quality, the Department of Telecommunications (DoT) during the shutdown.
has directed companies to submit details of their (March 30, 2020) The Economic Times
requirements to the DoT’s spectrum arm the Wireless
Planning Commission (WPC). According to unnamed India’s cellcos have been instructed to pay Adjusted
industry sources, the DoT has asked operators to Gross Revenue (AGR)-related dues based on
provide details of their requirements for access their own assessments, with the Department of
and backhaul spectrum on a circle-by-circle basis. Telecommunications (DoT) to issue revised notices
The regulator has yet to confirm whether additional at a later date, report citing Minister of State for
frequencies would be made available or on what Communications Sanjay Dhotre. Operators would
terms such permissions would be awarded, however. be required to submit documentation with their self-
Operators had asked for the additional spectrum to assessments, and the DoT would base its revised
guarantee that their systems could cope with the strain demands notices on those documents, the official
of the surging demand as India went into lockdown explained. The minister made the statement in
from 24 March, requiring many of the country’s response to questions in parliament regarding the
workers to telecommute and work remotely; in some DoT’s progress in finalizing AGR dues after the gulf
cases providers said they had seen data use double between the DoT’s estimates and providers’ self-
since the lockdown order. Similarly, the COAI and fellow assessments became apparent. As previously reported
industry group the Tower and Infrastructure Providers by TeleGeography’s CommsUpdate, Bharti Airtel
Association (TAIPA) have sought permission from local submitted INR130 billion (USD1.75 billion) in AGR
authorities to use mobile towers that had been sealed dues plus a further INR50 billion to cover potential
prior to the outbreak. The DoT has asked senior state discrepancies between its calculations and those of
and Union Territory authorities to designate officers to the regulator. Airtel noted the payment represented
ensure the maintenance of telecom infrastructure for the ‘full and final amount’ due to the government form
the duration of the lockdown. Measures introduced by AGR issues, but the figure was around half of the DoT’s
The Reserve Bank of India (RBI), meanwhile, have given estimate of roughly INR354 billion. Similarly, Tata
the nation’s cash-strapped telcos some relief, most Teleservices (TTSL) has paid its full amount of INR22
notably by implementing a three-month moratorium billion, whereas the DoT had estimated dues of around
on certain loan repayments and cutting interest rates INR148 billion from the cellco. The AGR dues relate to a
for new borrowing. A spokesperson for the COAI said decision by the Supreme Court in October 2019, which
that the pause would help cellcos maintain cash flow ruled that revenue from non-telecom sources should
and dismissed fears of a potential tariff hike saying be included in the calculation for AGR, upon which
that operators would keep tariffs stable for now. providers’ license fees are based. The court’s decision
Elsewhere, Indian lawmakers have asked telcos to was initially expected to cost the industry INR1.47
waive call charges for migrant workers for a month as trillion, with payment due by late January – a deadline
‘hundreds of thousands’ attempt to leave cities and which was missed by all but Reliance Jio Infocomm
return home by foot or by bus after long-haul train (Jio) – and the Supreme Court has dismissed appeals
services were closed down last week. Major cities are by providers for extensions or further clarity on the
seeing an ‘exodus’ of day laborers and other workers matter.
that have been left without an income as a result of (March 13, 2020) The Economic Times

130 MARCH 2020