Page 98 - SAMENA Trends - May 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

TRAI Dismisses Operator Demands for Price Floor

The Telecom Regulatory Authority of India (TRAI) has shot down the sector is sustainable, and is in a position to bear the deferred
demands from India’s mobile operators to set a tariff floor, arguing spectrum and AGR dues.” COAI began pursuing a tariff floor in
that no action should be taken until the fallout from the COVID-19 December 2019, prompting TRAI to open a public consultation on
pandemic has been contained. India’s three largest mobile the matter. It would have marked the first time India’s government
operators – Reliance Jio, Bharti Airtel and Vodafone Idea – argue intervened to set a minimum price across any sector, but the
that the measure would make tariffs affordable for consumers and request was dropped in March 2020 after the CCI (Competition
sustainable for operators. Following the redefinition of adjusted Commission of India) and the Policy Commission declared that it
gross revenue (AGR), operators in India now face substantial tax would likely have a negative impact on competition while ensuring
increases and claim the price floor would help to safeguard their operators continued to profit. Speaking to The Economic Times,
profits in lieu of government relief. In a letter to TRAI, the Cellular COAI director general Rajan Mathews said that the body was now
Operators Association of India (COAI) – which represents Jio, Airtel demanding that TRAI hold open house discussions online in order
and VIL – argued that “given the financial pressure on the sector to address the issue so that this “critical avenue is not put at risk
and the fact that ARPU and tariffs of the Indian telecom sector are at this critical juncture”. The body argues that COVID-19 crisis
the lowest in the world, floor pricing is imperative to ensure that has amplified the need for healthy industry capable of investment,
and that a price floor would aid this. However, TRAI chairman
RS Sharma effectively dismissed this request, arguing that the
current upheaval as a result of COVID-19 (coronavirus) meant that
protecting consumers was paramount, saying: "it may be a better
option that any further discussion on the issue is held after the
lockdown is completely lifted and normalcy is restored.” “TRAI is
always open to discussion, and has initiated a consultation on the
issue on the demand of industry before the pandemic engulfed the
country and the whole world. With changed circumstances, most
consumers are in severe distress”, added Sharma. The regulator
has noted that while operators are only demanding a floor tariff
for data, it would be open to discussing a similar system for voice
services as well as a price ceiling.

Dutch Multi-Band Auction Will Start 29 June

The Netherlands’ radio frequency cellcos KPN, VodafoneZiggo and T-Mobile Policy – was not acting unlawfully by
spectrum agency Agentschap Telecom have all indicated that their license bidding auctioning 5G frequencies. Stop5GNL had
(AT), under the Ministry of Economic applications have been accepted. A 40% argued that existing research into potential
Affairs & Climate Policy, announced that individual spectrum cap applies across health effects of 5G was insufficient.
the country’s multi-band mobile auction the total available frequencies, to ensure at In January a report from public health
including 5G-suitable spectrum will start least three providers of high speed mobile institute RIVM and AT concluded that 5G
on 29 June 2020, in keeping with an EU communications hold adequate spectrum network radiation was within European
deadline to allocate 700MHz mobile resources to meet future demands, and limits, agreeing with the International
broadband frequencies by end-June. On to safeguard competitive pricing and Commission on Non-Ionizing Radiation
offer is 2×30MHz in the 700MHz band quality for consumers and businesses. A Protection, the organization determining
(previously allocated mainly for digital day before AT’s announcement, the Court exposure limits for electromagnetic fields
TV), 1×40MHz in the 1400MHz ‘L-band’ of The Hague issued an interlocutory used by devices such as mobile phones. AT
(for ‘supplemental downlink’, useable only judgment rejecting a lawsuit from the has committed to ongoing monitoring of
in conjunction with other frequencies) Stop5GNL Foundation campaign group the situation, promising state intervention
and 2×60MHz in the 2100MHz band (in aimed at blocking 5G network rollout if future insights showed any health risks.
existing mobile use, originally issued as and spectrum auctioning. As reported by Dutch police are meanwhile investigating
3G UMTS spectrum). AT stated that new DutchNews.nl, the ruling of 25 May (see a spate of arson attacks on mobile masts
licenses are expected to be issued ‘in the link below) found no reason to stop 5G around the country, the 28th incident of
summer period’ (while the new 2100MHz deployment while concluding that the which was reported in Limburg on 24 May.
licenses are effective from January 2021). State of the Netherlands – represented by
All licenses will run until 2040. Incumbent the Ministry of Economic Affairs & Climate

98 MAY 2020