In a move to connect Aam Admi to reach one billion-connectivity club that will bridge the gap of digital divide in India, both the Government and Telecom Regulatory Authority of India (TRAI) have pitched telecom firms for reducing the price of telecom services, including data and call rates for each and every user in the country to avail them at an affordable cost.
At times when each and every mobile user in the country continues to struggle with call drops, the telecom regulator feels that current norms are not effective in providing any relief to consumers, especially high cost of data services as well as call rates. Besides, TRAI, which banned differential tariffs on the internet a couple of months ago, on Monday issued a pre-consultation paper on net neutrality to seek stakeholders’ views.
“I feel existing norms are not effective in providing any relief to consumers. The most important factor in connectivity for masses is the price or cost issue of data services and call rates which are still very high in the country. In order to reach the billion-mark figure, the telecom industry needs to cut down the prices of services, especially data and call rates for mobile users,” TRAI Chairman RS Sharma said.
As per industry estimates, the country has achieved only 300 million connectivity so far while one-billion figure is far-away dream for the industry in the near future. As the telecom sector is growing at a rapid pace, it is expected that India will the one of the fastest global markets in connectivity terms if efforts are made through the Government policy initiatives in the future.
It has been observed that for last two years, Digital India initiative led by Prime Minister Narendra Modi Government has done wonders in terms of connectivity and mobile usage in the country. But the Government feels that some issues concerned with telecom industry is still creating stumbling-blocks in the growth pace.
Praising the telecom firms, Sharma said the industry has reached bottom of pyramid in terms of connectivity but cost of expenditure per mobile user is still very high. “The industry needs to curb this menace to grow connectivity in the country,” he added.
Referring to call drops, he further said, “There is an urgent need to provide quality services to the users so that we can achieve our target to reach one-billion figures in connectivity issue. Net neutrality is a big issue in this connection, so we thought of first compiling all issues that can come up so that when we come out with a consultation paper it covers everything. That is why we have increased a step and come out with a pre consultation paper,” Sharma said
Supporting TRAI’s concern, JS Deepak, Chairman (Telecom Commission) & Secretary, however, said, “As data opportunity in India is huge, it is our first challenge that we need to bridge the gap of connectivity, especially in rural belt of the country. The Government is taking various initiatives to promote those schemes. For rural areas, we have seriously looking into infrastructure issues in data connectivity matter.”
Besides, the Government, he added, is also planning a unique scheme for connectivity in Gram Panchayat level in next 3-4 months this year with Wi-Fi initiatives for rural users too at a very low cost and easily affordable price of Rs 100.
On the other hand, putting growth concern before the Government, GSM industry body Cellular Operators Association of India (COAI) said the telecom industry’s revenue grew 6.5 per cent last year, the lowest since 2010, despite the sector witnessing a further addition of 79 million active subscribers during the period.
“Telecom regulator TRAI reducing interconnection charges from 20 paise per minute to 14 paise per minute, decline in roaming rates and reduction in SMS rates has led to steep decline of an estimated 8-10 per cent,” said Himanshu Kapania, former COAI Chairman and Managing Director of Idea Cellular.