The Cellular Operators Association of India (COAI) is not too happy with the TRAI's recommendations on the framework for service authorisations under the Telecom Act, 2023. COAI wants the existing way or the contractual nature of the licenses to continue in the telecom sector. The Department of Telecommunications (DoT) and telecom operators go into a legally binding contract when the telecom licenses are issued. These agreements outline the rights, obligations and operational parameters for everyone involved. However, now the government is looking to grant service authorisation under Section 3(1) of the Telecommunications Act, 2023, instead of entering into an agreement with the entity.
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COAI said this - "....is without any valid justification and goes against the position of TSPs, while also undermining the current regime that has worked successfully for more than 3 decades - bringing enormous inflow of investments and growth in the sector."
The telecom association also said that it has been advocating for the reduction in license fees and had suggested the present rate to be reduced from 3% to 0.5-1%. Along with that, COAI has also requested the government to abolish the universal service obligation fund (USOF) or at least pause it until the existing funds have been used. However, this has not been recommended by TRAI yet, said COAI.
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"Furthermore, our concern that OTT Communication Services were excluded under the new authorization as Access Service is a great concern as this omission perpetuates an uneven competitive landscape, as the Telecom Service Providers (TSPs) continue to bear the weight of extensive compliance and security requirements," said COAI.
"OTT Communication Service Providers remain largely unregulated, raising questions not only about market fairness and regulatory consistency in the rapidly evolving digital communications sector but also about national security and customer privacy," TRAI added.
