COAI said that due to financial pressure on the sector and low telecom tariffs, floor pricing is imperative for the sector's sustenance.

Telecom tower
Atom Telecom Monday, May 25, 2020 - 18:33

The Cellular Operators Association of India (COAI) has sought an early decision on the floor price for data services from telecom regulator TRAI.

In a letter to the Telecom Regulatory Authority of India (TRAI), the industry body noted that given the financial pressure on the sector and the fact that telecom tariffs in India are lowest in the world, floor pricing is imperative to ensure sustenance of the sector, as it also has to bear the impact of deferred spectrum and AGR dues, while continuing to invest in world class networks and services.

"The industry is looking forward to an early conclusion on this important matter with great interest and we therefore request the authority for an early decision on the same," it said.

Acknowledging that the recent situation on account of COVID-19 might have caused constraints, the COAI noted that the authority, however, has started conducting the online open house discussions (OHD) on various topics.

"Accordingly, we request the authority to kindly hold an OHD on this issue at the earliest," said the letter signed by COAI Director General Ranjan Mathews.

TRAI had listed the consultation paper on tariff issues of telecom operators last December. An open house discussion on the issue, however, has been delayed amid the pandemic.

CNBC reported that COAI recommended for the floor price to be fixed only for two years following which it can be reviewed by the TRAI. It added that even if voice tariffs remain unchanged, data tariffs should have a floor price. 

With IANS inputs

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