Zero tolerance on call drops should not be imposed: Telcos to SC

Indian telcos have refuted the telecom regulator’s allegations that they are making huge gains in the sector, and told the Supreme Court that zero tolerance on call drops should not be imposed on them, given they have to pay big price for spectrum, even as the entire sector reels under huge debt.

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Senior advocate Kapil Sibal, appearing for telecom operators, told the court that they have been investing hugely on the infrastructure, and have installed over 2 lakh towers in the past 15 months to address the call drop issue.

“They (TRAI) said that we have been making Rs 250 crore a day but what was not specified was that we are under huge debt. We have to pay over Rs 3.8 lakh crores as debt. We are buying spectrum at Rs 45,000 crore, which was earlier Rs 1,658 crore,” Sibal said, according to a PTI report.

Sibal added that telcos are not gaining anything and the rate of return is less than one percent at the end of a year. He argued that the telecom regulator, Trai, had compared India with China but in that country the spectrum is given for free to the top three telecom companies which are state run.

“Our tariff is lowest in the world. We are serving over one billion subscribers in India and we are one of the largest contributor to FDI and provide a million of jobs,” Sibal said.

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5 Comments on "Zero tolerance on call drops should not be imposed: Telcos to SC"

 

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varghz
May 5, 2016 8:08 pm 8:08 PM

Im now in Canada for studies and i use virgin mobile of plan $60 comes around $67.8 after tax.
Gives me Canada wide unlimited calling without roaming, Free international sms and 6gb Lte.

i pays around 3700INR to get these, just compare these price with India

Madhan Kumar
May 5, 2016 2:07 am 2:07 AM

Our tariff is lowest in the world,really r u sure Mr.Kapil Sibal??? Clearly this advocate is fighting for greedy disgusting telecos leaving common man to suffer,god only knows how many bags of lakhs of crores he got under table to accept this case.A rich gets richer while a poor gets poorer,this happens only in our Grt India…..

kannu
May 4, 2016 6:38 pm 6:38 PM
MR SANJAY KAPOOR ( FORMER CEO BHARTI AIRTEL ‘S INTERVIEW’S EXCERPTS ) -” SHANGHAIhas less than 500 customers per tower. Delhi, on the other hand, supports 5,500-6,000 customers per tower. China Mobile has 100% towers connected with fibre. For India’s leading operators, it would be less than 20%. In Delhi, the number of customers are 20 times higher per MHz per tower than in China. This problem is exacerbated by India’s lowest spectrumper-sq km: resulting in our internet speed being among the lowest globally . The government’s spectrum pricing, sharing and trading policies have had little impact on industry consolidation… Read more »
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