Covid-19 lockdown: Trai asks telecos to extend validity on prepaid numbers

Sector regulator TRAI has asked telecom operators to extend the validity period of prepaid users to ensure that subscribers get uninterrupted services during the 21-day nationwide lockdown.

Telecom Regulatory Authority of India (TRAI) has also sought details of the steps being taken to ensure availability of uninterrupted telecom services to such customers on a "priority basis".

"...you are required to take necessary steps as deemed fit including extending the validity period to ensure that all prepaid subscribers can enjoy uninterrupted services during the period of lockdown," TRAI said in a communication to all operators on Sunday.

The communication on "measures regarding ensuring availablity of recharge vouchers and payment options for prepaid services" comes in the backdrop of 21-day lockdown imposed in the country to deal with the outbreak and spread of coronavirus pandemic.

ALSO READ: Coronavirus LIVE: Tamil Nadu reports 17 new cases; global total at 723,717

"Though the telecommunication services have been considered as essential services and thus granted an exception from closing down... However, lock down may adversely affect the working of customer service centres/point of sale locations," TRAI said.

The regulator added: "Under the circumstances, it is quite possible that those subscribers who wish to top up their prepaid balances or wish to extend subscription to a prepaid tariff using offline channels may face hardships and/or disruption of services".

Prime Minister Narendra Modi on March 24, announced a complete lockdown of the entire country for 21 days in an unprecedented move to try halt the spread of the pandemic, shortly after which the Centre said road, rail and air services will remain suspended during this period.

The pandemic has claimed 29 lives in the country and number of COVID-19 cases has touched 1,071 in India.

ALSO READ: No plan to extend 21-day coronavirus lockdown: Govt quashes rumours

Trai proposal puts liability burden on sellers in telecom M&A deals

In a bid to reform the merger norms for telecom licences, the Telecom Regulatory Authority of India (Trai) on Friday suggested that liabilities arising out of a deal would be the seller’s responsibility, as opposed to the buyer’s currently.

These recommendations are expected to streamline the merger & acquisition process and settle legal disputes in the telecom sector.

Though Trai may consider it a reformative step, experts are of the view that with only three private telecom players in the market, these reforms are too little, too late. Too few players mean barely any scope for mergers and acquisitions.

“These definitions and separation made sense when there were more players, but now such measures are of hardly any use as there are only three private players,” said an independent expert said.

These measures are mainly to curb anti-competitive issues, which may arise out of mergers and acquisitions in the sector.

Trai also suggested that both revenue and subscriber base would determine the overall market share of mobile and internet service providers (ISPs).

It also proposed that for services like national and international long-distance telephony, only revenue would be considered for the market share calculation of ISPs.

ALSO READ: Govt takes a call to save telecom firms, but no relaxation likely on AGR

It said that both number of subscribers and adjusted gross revenue (AGR) be considered for determining the market share in the case of services like access, internet, and VSAT (very small aperture terminal).

Only AGR should be considered for calculating the market share for other services, such as national and international long-distance calls, and resale of international private leased circuits, it suggested. The authority recommended guidelines explicitly mention that consequent upon payment of the market-determined price for spectrum, such spectrum is treated as liberalised, or technology-neutral.

It reiterated its earlier suggestion that if a transferor company holds part of spectrum, which has been assigned against entry fee, the resultant entity is liable to pay differential amount for the spectrum assigned against the entry fee paid by the transferor company, from the date that the DoT (Department of Telecommunications) approves the transfer/merger.

The sector regulator also suggested the one-year timeline, which currently allows for transfer/merger of licences in different service areas after the National Company Law Tribunal nod, should exclude time spent by companies in pursuing any litigation on account of which the final approval to a merger is delayed.

It said the guidelines on transfer/merger of licenses should not explicitly mention the spectrum caps and instead be linked to the relevant clause of the licence.

Trai’s recommendations on reforming the guidelines for transfer and merger of telecom licences came months after the telecom department in May 2019 sought its views on enabling simplification and fast-tracking of approvals. The suggestions range from market share mathematics to approval timelines, and other terms.

The regulator noted the guidelines must be seen in the backdrop of consolidation in the market (from 12-14 service providers a decade ago to only four operators now), the National Digital Communication Policy's thrust on speedy approvals, and the delay in mergers.

Currently, there are three private players — Bharti Airtel, Vodafone Idea, and Reliance Jio — and one public sector entity, Bharat Sanchar Nigam.

ALSO READ: Govt needs to focus on telecom sector's sustainability, says Sunil Mittal

“The authority recommends that for computing market share of an NSO (network service operators) in the relevant market, the market share of the VNO (virtual network operator) parented with it should be added to the market share of NSO, if the NSO is a promoter of the VNO," Trai stated.

Virtual network operators can provide telecom services like mobile landline and internet, but only as retailer for full-fledged telecom operators.

"For the calculation of one year, that is the time period allowed for transfer/merger of various licenses in different service areas subsequent to the approval of the tribunal/company judge, the time spent in pursuing any litigation on account of which the final approval of a merger is delayed should be excluded," the regulator said.

This would protect the rights of a telecom operator to pursue remedies in the court and also ensure that the period of one year does not become redundant for no fault of the company on account of pendency of an issue before a court, one of the stakeholders cited by Trai had submitted.

Another provision of the acquisition guidelines, which provide an exemption from substantial equity/cross-holding clause for one year or more, should be modified such that the said exemption is provided only for a period until transfer/merger of the licence is taken on record by the licensor (telecom department).

Broadcasters reject Trai's tariff order, say it will impact jobs, growth

Television broadcasters on Friday united against regulator Trai's recent order capping prices for channels, saying it will "jeopardise" content creation, impact jobs and pull down economic growth.

The Telecom Regulatory Authority of India (TRAI) had last month revisited its tariff order to soften the prices for end consumers through interventions, including reducing the maximum price one has to pay for a channel to Rs 12 from the previous Rs 19. The broadcasters got together under the aegis of the Indian Broadcasting Foundation (IBF) to oppose the move in a rare press conference which had top executives from all the leading networks speaking out.

The grouping's president and head of Sony Entertainment, N P Singh said there was no need for the new order and the regulator should have had ideally given time for things to settle down after last year's tariff order.

He claimed the broadcasters, who garner only a fourth of the payments made by end consumers with a bulk 65 per cent going to distributors, had supported the last order despite reservations and invested over Rs 1,000 crore to educate the people on it. After last year's order, he said the industry had lost over 12 million subscribers.

Star TV's Uday Shankar termed the new order as "ludicrous" and said the industry will use all its "constitutional rights" to challenge the order in seeking a rethink.

TV Today's Aroon Purie said the new order will "strangulate" the industry and added that it is an important sector which the government should encourage and not suppress. Discovery Networks' Megha Tata said India is already the cheapest cable market in the world and the future of the sector will be in jeopardy through such regulatory interventions.

Singh said the broadcasters seek a stable regulatory regime and interventions like these are contrary to the Narendra Modi government's promise to ensure ease of doing business for enterprises. He said pricing should be left to the market forces and not driven down through regulatory fiats, and was unsure if the prices will indeed go down with the Trai order.

Apex broadcasters' body decries Trai's new cap on channel pricing

The Indian Broadcasting Federation (IBF), the apex body of broadcasters, on Friday expressed its displeasure at the telecom regulator’s latest notification, saying the move would hamper industry growth and lead to shutting down of channels and unemployment.

IBF will now strategise its future course of action, including evaluating legal options, based on feedback from its member channels and networks.

The Telecom Regulatory Authority of India (Trai) had issued amendments to its February, 2019, tariff order earlier this week. Among other things, Trai reduced the cap on the maximum retail price (MRP) of individual channels that can form part of a bouquet to Rs 12 per month from an earlier cap of Rs 19. The regulator has also sought to impose twin conditions for bouquet formation, effectively introducing a cap on bouquet pricing, which was left untouched in the new tariff order (NTO).

The IBF said this was done without giving any “logical reason” and termed it arbitrary. It noted that coming barely a few months after Trai notified the NTO, effecting a disruptive change of the distribution ecosystem, these amendments would severely impair broadcasters’ ability to compete with other unregulated platforms and adversely affect the viability of the sector.

The broadcasters claimed that Trai was trying to micro-manage what was arguably the cheapest rates for news and entertainment in the world. In the past 15 years of regulating the broadcast sector, Trai has issued 36 tariff orders and ancillary regulations.

“This goes contrary to the government’s stated position of ensuring the ease of doing business. While Trai claims the amendments are in consumers’ interest, it appears to have conveniently forsworn the interest of broadcasters,” IBF said. It added that this change would only benefit distribution platform operators (DPOs) as they have been allowed to charge as much as Rs 160 for the channels that are supposed to be free.

In a recent report, India Ratings had said it believed Trai's amendments to the tariff and interconnection regulation were largely neutral for multiple system operators (MSOs) and negative for broadcasters. The amendments have focused on a reduction in the final customer price, resulting in broadcasters bearing the largest burden in the value chain, it said.

The industry body noted that broadcasters had pleaded with Trai (in response to its consultation paper) to allow the industry to come to terms with the NTO before making further changes.

In changes to February 2019 order, Trai has reduced the cap on the MRP of individual channels that can form part of a bouquet to Rs 12 per month from an earlier cap of Rs 19

The regulator has sought to impose twin conditions for bouquet formation, effectively introducing a cap on bouquet pricing, left untouched in the new order

IBF will evaluate legal options based on feedback from member channels and network

The IBF says the change was done without giving any “logical reason”

It observes that these amendments will severely impair broadcasters’ ability to compete with other unregulated platforms

It accuses Trai of trying to micro-manage what was arguably the cheapest rate for news and entertainment in the world

“In fact, Trai itself had acknowledged this need by proposing a two-year moratorium on further regulation. It appears all IBF’s pleas have been ignored. Unfortunately, in this exercise, content creators and owners have been disempowered and the entire authority has shifted to middlemen," the IBF said.

The changes are likely to have ramifications. IBF felt that at a time when the economic environment was tough, the order would force many channels to shut down and lead to unemployment in the sector. After the NTO, the ecosystem had settled down with about 200 million consumers choosing their favourite channels.

Trai issues draft rules on network testing norms for wireline services

The Telecom Regulatory Authority of India (Trai) on Tuesday issued draft recommendations on ‘network testing before commercial launch of wireline services’ as it mooted a 90-day limit on the test phase involving trial subscribers in such cases.

Trai has sought stakeholders’ views on the draft recommendations that are modelled on the lines similar to norms that it had previously prescribed in the case of mobile services.

“Most of the issues raised during the consultation process for the norms for network testing before commercial launch for mobile services, are equally applicable for wireline access services. However, according to the reference received from the Department of Telecom (DoT), this consultation paper on draft recommendations is issued to solicit the views of the stakeholders for specifying the norms of network testing before commercial launch of services for wireline access services,” Trai said.

According to the draft recommendations, a telecom service provider should be allowed to enrol test subscribers in the trial phase to carry out the network testing before commercial launch of its services.

“The authority recommends that there should be no restriction on the time-limit, if the network testing is conducted using wireline telephone test connections given to employees and business partners for test purpose only,” it said.

The number of test subscribers that can be enrolled by an operator in a circle should be limited to 5 per cent of its installed network capacity for that area.

“The service provider will submit the detailed capacity calculations of the network to DoT and Trai at least 15 days before commencing enrolment of test subscribers,” it added.

The draft recommendations also said that there should be a limit of 90 days on the test phase involving test subscribers.

“However, if the TSP fails to conclude network testing due to valid reasons, it may make a representation to the licensor, seeking additional time for network testing giving detailed justification, which may be decided by the licensor on a case-to-case basis. The requisite norms to be followed for extension of timeline for network testing may be formulated by the licensor," Trai said.

The duration for network testing provided to the operator should not exceed 180 days, according to the draft.

Trai has said that written comments on its latest consultation paper should be submitted by January 30, 2020, and counter-comments by February 13, 2020.

WHAT THE DRAFT NORMS SAY

Telecom service provider should be allowed to enrol test subscribers in the trial phase to carry out the network testing before commercial launch of its services

Number of test subscribers that can be enrolled by an operator in a circle should be limited to 5 per cent of its installed network capacity for that area

The draft recommendations also said that there should be a limit of 90 days on the test phase involving test subscribers

Can a floor price for mobile tariffs save beleaguered telecom players?

On Tuesday, the Telecom Regulatory Authority of India (Trai) commenced a consultation process to inquire if there is any regulatory intervention required for fixing tariffs and the floor price of mobile services. Besides this, the regulator also deferred by one year the scrapping of the charge paid by mobile phone users for calls made to rival networks.

At present, call and data tariffs are under forbearance. This means that the companies have a free hand in fixing rates and have to report tariff plans to Trai, within seven days prior to the launch.

Well, if you are wondering what changes after the introduction of fixed floor price, let me tell you, if that happens, free calls on mobile services may become a thing of the past, as it leads to effectively ending free mobile/phone call and data regime.

However, in 2017, just a year after the entry of Reliance Jio with free data and voice tariffs, existing telcos had approached the regulator to consider setting up a floor price as their revenue streams started shrinking. But, the idea of a floor price didn’t seem workable to the regulators then and subsequently, operators, too, agreed.

But now, considering the perilous state of the country’s telecom sector, especially of telecom giants like Vodafone Idea, which posted the highest loss in India’s corporate history and Airtel, bearing its highest quarterly loss in 14 years in the quarter ended 30 September, floor price is considered as a relief to them.

In view of this, on Tuesday, Trai announced that telecom operators will continue to pay 6 paise per minute for every outgoing call made to their competitors' network till December 31, 2020. These charges are proposed to become zero from January 1, 2021.

Telecom industry body COAI sees it as a relief for the debt-ridden sector and asserts that continuing with six paise mobile call termination charge will not have any impact on consumers as operators have already absorbed these charges in their recently increased mobile call and data rates.

Within hours of Interconnect Usage Charge or IUC announcement, TRAI released a consultation paper to fix minimum rates for mobile services, a move that can effectively end the regime of free calling and dirt cheap data.

Undoubtedly, the outcome is likely to lead to further hike in mobile call and data cost as industry wants average revenue per user to reach Rs 300 per month from about Rs 125 at present over a period of two years - better revenue realisation per user will offer a much needed breather to stressed telecom industry where debt levels have soared to Rs 7.8 lakh crore.

TRAI looking at setting floor price to ensure viability of telcos

Telecom sector regulator Trai on Thursday dropped broad hints that it may be open to the idea of setting a minimum tariff for calls and data to ensure viability of the sector.

Telecom Regulatory Authority of India (Trai) had, in past, vehemently opposed any intervention by the regulator in setting either cap or floor tariffs, and the U-turn in its thought process came a day after Bharti Airtel head Sunil Mittal reportedly pressed Telecom Secretary for setting a floor or minimum rate for data.

Speaking at the AVIA India Video 360 event here, Trai Chairman R S Sharma said telecom tariffs have been under forebearance for the last 16 years that have been working fine, and it now looking at renewed industry demand for fixing a floor price.

Free voice calls and dirt cheap data by billionaire Mukesh Ambani's Jio has wrecked havoc on the industry, which squeezed finances to match them.

"It is only recently that the telecom companies have together written to us that regulate us, so it's for the first time," he said. "In the past, in 2012, I remember they had opposed tooth and nail the Trai's proposal to regulate tariffs. They said tariffs must be left under forebearance."

Stating that the regulator is focussed on three overarching principles of consumer protection, fair competition and growth of the industry, he said Trai had, in the past, allowed telecom companies to decide tariffs and stepped in only when operators sought intervention from the regulator.

"But if there are certain market failures, if there are certain abberations, if one of the objectives, for example consumer protection, is not being met with, then obviously we will have to think of ways to ensure that these objectives are met with," he said.

Sharma said the telcos in 2017 had given a proposal, asking the regulator to fix a floor price, which Trai had observed to be a "bad idea".

The proposal surfaced again after the October 24 ruling of the Supreme Court that upheld the government position on including non-telecom revenues in calculating statutory dues. After the ruling, Bharti Airtel, Vodafone Idea and other telecom operators have to pay Rs 1.47 lakh crore in past dues.

Mittal met Telecom Secretary Anshu Prakash on Wednesday after which he reportedly said setting a floor for tariffs was important. The telecom czar said tariff needs to go up and industry needs to become viable.

Sharma said in 2017, the telcos were consulted and "all of them came to the conclusion that floor price is a bad idea, so regulatory intervention is not required".

"And again they have said in a couple of weeks back, so we will have to consider what to do," he said. "But what I am saying is that ideally we would not like to put any regulation, if the market is functioning in an efficient and fair manner, that is our broad principle. So, achieving the objective without doing anything is the best.

Trai issues revised MNP process notice; new norms effective from Dec 16

Telecom regulator TRAI on Tuesday issued a public notice on the revised mobile number portability process, which is slated to make the porting process fast and simple from December 16.

The new process, which comes with conditions for generation of Unique Porting Code (UPC),entails three working days' timeline for port out requests within a service area, and five working days for requests for port out from one circle to another.

There is no change in the porting timelines for the corporate mobile connections, the Telecom Regulatory Authority of India (TRAI) said.

"TRAI has revised the Mobile Number Portability (MNP) process...In the revised MNP process, the Unique Porting Code (UPC) will be generated only when the subscriber is eligible to port-out his mobile number," TRAI said.

From December 16, 2019, the revised MNP process will be in place and mobile subscribers can generate the Unique Porting Code and avail the mobile number porting process, it added.

Laying down the rules for the new process, TRAI said a positive validation of various conditions will determine generation of the Unique Porting Code. For instance in case of post-paid mobile connection, the subscriber has to ensure clearance of 'outstanding dues' towards the existing telecom service provider for the issued bills as per normal billing cycle. Other conditions include activation in the present operator's network of not less than 90 days; no pending contractual obligations to be fulfilled by the subscriber as per the exit clause provided in the subscriber agreement.

UPC will be valid for four days for all Licensed Service Areas (LSAs) except the circles of Jammu & Kashmir, Assam and North East where it will remain valid for 30 days.

"As the existing MNP system shall migrate to new MNP process with effect from 16 December 2019, facility of MNP will not be available during the period from 10 December 2019 to 15 December 2019 and Unique Porting Code will also not be generated during the migration period. However, the porting requests already submitted will continue to be processed," TRAI said.

Telecom tariff: Trai to review transparency in publishing of offers

The Telecom Regulatory Authority of India (Trai) on Wednesday floated a consultation paper on transparency in tariff offers by telecom operators.

The paper has been brought out amid complaints by individual consumers on lack of transparency in disclosure of tariff information.

“It is felt that a comprehensive review of extant provisions, aimed at transparency relating to flow of information from telecom service providers to consumers, is essential,” Trai said.

Accordingly, a consultation paper has been floated with the objective of empowering consumers by making all relevant information available to them, it added. The regulator has sought comments from stakeholders for prescribing the format for publishing tariff.

The other issues on which comments have been sought are whether telcos should be asked to disclose implications of discontinuation of tariff plan after expiry of the mandatory tariff protection period of six months. The tariff order requires service providers to ensure that the tariff is not changed adversely for a period of six months from the date of enrolment of a customer.

“If the tariff plan offers a free subscription of certain service for a period exceeding six months and the service provider proposes to change the tariff or discontinues the tariff plan after six months, the subscriber runs the risk of losing the remaining free subscription period if he does not agree to the revised tariff or exercise option to migrate to the plan offered,” Trai said.

There have been reports of telecom companies approaching the regulator to fix the floor price or minimum tariff to be offered by them.

At present, mobile tariffs are under forbearance, which means operators have a free hand in fixing rates. They have to only report tariff plans to TRAI within seven days of the launch.

In 2017, after the entry of Reliance Jio, existing telcos then had approached the regulator to consider setting up a floor price as it impacted their revenue.

Will review regime for foreign call termination charges, says Trai

The Telecom Regulatory Authority of India (Trai) on Friday decided to address the issue of interconnection usage charges (IUC) and said it would review the matter through discussions.

Trai, in its consultation paper, said it would review the regulatory regime for international call termination charges that were lowered to 30 paise per minute last year. It means that operator A pays operator B international call termination charge of 30 paise per minute if a call from the former’s network lands on the latter’s network. In an earlier review, Trai had brought down the termination charge for international incoming call to wire line and wireless networks to 30 paise per minute with effect from February 1, 2018.

This had marked a 43 per cent reduction in international termination charge (paid by international operators to local networks that receive calls) which had previously been pegged at 53 paise a minute.

Trai's IUC review will punish efficient telcos, reward defaulters: Jio

Terming TRAI's review of call connect charges "retrograde", Reliance Jio has said the regulator's consultation paper is neither warranted nor sustainable and that retention of such charges will harm subscribers and punish efficient operators.

Jio alleged that any deferment of sunset clause for inter-operator termination charges will end up rewarding "designed defaulters" who have deliberately stayed away from new and efficient technologies.

Jio has shot off a letter to TRAI saying the present Consultation Paper "subsidises and incentivises the telecom service providers who, by design and astute planning, do not want to shift to IP based technology".

Jio has questioned TRAI's jurisdiction and reasons to tinker with the original schedule for implementation of zero termination charge regime from January 1, 2020.

Launching a scathing attack on the Telecom Regulatory Authority of India (TRAI), which is examining whether sunset clause for inter-operator termination charges should be deferred, Jio said nothing prevented incumbent operators from switching their networks to efficient VOLTE (Voice over Long-Term Evolution) all this while.

"Unfortunately, this consultation process is an inducement and acts as an incentive to such calculated and planned asymmetry, and it has become apparent and evident that securing termination charges has become an unfettered source of income (and not a means for cost recovery) for these operators," Jio said in its letter dated October 10.

"This retrograde step" in the form of the present Consultation Paper "is neither warranted nor sustainable", Jio said.

It said charging a termination cost would perhaps be justified by two purposes, cost recovery and addressing inevitable prevalence of asymmetry in traffic, and noted that since neither of these purposes exist any deferment of the regime will inflict immense harm to the subscriber base and causes enormous damage to the TSPs who have deployed efficient technologies.

The Mukesh Ambani-led company has also pointed to gaps in the 4G accessibility data cited in the TRAI's discussion paper and added that nothing prevented operators from converting their circuit switch based voice into VOLTE. Jio accused other private operators of not moving to new technologies simply because they will have to move into a Bill And Keep (BAK) regime, and "will stop receiving termination charges."

TRAI's review acts as an "active inducement and promotes designed defaulters and acts as a punishment to those TSPs who have aligned themselves with the required technology with an endeavour to deliver the best service and at a low price to their subscribers".

Jio said TRAI has no jurisdiction or cogent reasons to intervene with the original schedule for implementation of zero termination charge regime.

"The data recorded by TRAI in the Consultation Paper reveals that the default on part of these telecom operators is not only a designed default, but also intended to maximize collection of unfettered revenues through termination charges," Jio said.

Notably, Jio said consultation paper while posing the question as to whether the sunset clause should be implemented as planned or deferred, does not address the termination charges payable after the deadline, if the date for its implementation is indeed deferred.

"It appears that the process initiated by the present Consultation Paper would simply defer the date of the implementation of the BAK regime and the terminating charge would remain at the 6 p/min, which would be wholly irrational," it said.

The further question as to whether the termination charge from January 1, 2020 should be 6 paisa or less has not been factored in the consultation process. Jio said the issue should be included to the current deliberations, should TRAI still consider the need to pursue the consultation process.

Trai floats consultation paper to form a unified numbering plan

The Telecom Regulatory Authority of India (Trai) on Friday floated a consultation paper for developing a unified numbering plan for fixed line and mobile services.

The consultation paper analyses the changes that affect the national numbering plan and identifies the ways in which numbering resource management and allocation policy might be managed for ensuring adequate numbering resources.

The paper noted that the last major review of numbering plan was carried out in 2003, with the formulation of National Numbering Plan 2003. This created a numbering space for 750 million telephone connections — 450 million cellular mobile and 300 million basic phones. “The National Numbering Plan (2003) was formulated for a projected forecast of 50 per cent teledensity by the year 2030. The anticipated 450 million cellular mobile connections by 2030 had already been achieved in 2009. The total number of telephone subscribers in India stands at 1,186.63 million with a teledensity of 90.11 at the end of June, 2019,”noted the paper.

Trai also noted that in view of the recent telecom mergers and closures, it needs to consider whether any change is required in the allocation criterion. “It is also possible to take back some of the numbering resources if it is not getting used. In case of mergers, it makes sense that the combined previous allocations should be considered for calculating the utilisation before any new allocation,” noted the paper.

At present, numbering resources allocated for wireline are underutilised, but the main challenge is to ensure adequate resources for wireless services. Even if a 200 per cent wireless tele-density in India is assumed, in 2050 the total number of mobile telephones working in this country is likely to be around 3.28 billion. The present capacity of 2,100 million number resources with DoT will be exhausted after nearly 1.2 billion connections have been given and after that there are no new numbers are left for allocation unless more levels/sublevels are freed up for mobile network use.

In case the numbering system is updated to a uniform 10 or 11 digit format, given telephone numbers are also associated with the digital identity of individuals, changes will be required in all databases requiring telephone numbers for identity, financial banking services, e-commerce and government welfare schemes using telephone numbers.

DoT has already allocated 13 digit numbers for M2M communication. It is also possible to shift these data only connections (SIMs used for data cards, dongles and other devices used only for Internet access) to 13 digit numbering series, since these devices are not used for making public switched telephone network (PSTN) voice calls.

Key issueS raised

Data on shifting mobile numbers from 10 digit to 13 digit numbering (including dongles, data cards)

Moving on to 11 digit numbering scheme for mobile and continuing with 10 digit numbering for fixed line services

Need for operators to file an “Annual Return on Numbering Resource Utilisation” to the numbering plan administrator for monitoring and ensuring efficient utilisation of number

Trai refuses to budge on 5G spectrum pricing in upcoming auctions

The Telecom Regulatory Authority of India (Trai) on Monday reiterated its recommendation on spectrum pricing in the upcoming auctions. In response to the Digital Communications Commission (DCC), the regulator said it had considered all the relevant factors, including methodology, assumptions, and developments in the telecom sector before giving its views.

Last month, the DCC had asked Trai to reconsider its spectrum recommendations amid financial stress in the sector and to also ensure competition and greater participation of a larger set of players in the upcoming auctions.

It had said that the demand for spectrum is likely to be subdued due to consolidation in the market, given there are effectively three private telecom service providers.

In its detailed response to the telecom department on Monday, Trai said it had considered all the relevant factors, including methodology, assumptions, developments between the spectrum auction in 2016 and its suggestions on August 1, 2018, and the rationale for spectrum valuation and reserve price while giving its recommendations.

“In view of the above, the authority reiterates the spectrum valuation and reserves prices as contained in its recommendations dated August 1, 2018,” said Trai.

On the issue of putting the entire available spectrum on auction, the authority said, “In case, spectrum in those bands — whose validity is expiring by December 31, 2021 — becomes available earlier due to any reason such as surrender, cancellation, etc, such spectrum should be made available to the successful bidder immediately on its availability.”

The regulator has, however, yielded ground on the issue of lock-in period it had previously recommended for spectrum in the 3,300-3,600 megahertz (MHz) band (for eligibility on spectrum trading).

The telecom regulator has now suggested a lower lock-in period of two years for this band against five years prescribed earlier.

“The authority recommends that no roll-out obligations should be mandated for spectrum in the 3,300-3,600 MHz band. Further, lock-in period for spectrum in this band for becoming eligible for spectrum trading should be the same as in other bands, i.e., two years,” said Trai.

Trai had recommended a pan-Indian base price of Rs 492 crore per MHz for 5G radiowaves, while lowering the base price of frequencies that remained unsold in the 2016 auctions. Airwaves in the 3,300-3,600 MHz 5G band will be auctioned in the block size of 20 MHz.

The reserve price for the premium 700 MHz spectrum, which went unsold in the 2016 auctions, was reduced by more than 40 per cent to Rs 6,568 crore per MHz all-India from Rs 11,485 crore in 2016.

Trai recommended a base price of Rs 4,651 crore for paired spectrum in the 800 MHz band covering 19 circles, Rs 1,622 crore per MHz for the 900 MHz band covering seven circles, Rs 3,399 crore per MHz in the 2,100 MHz band covering 21 circles, and Rs 821 crore per MHz in the 2,500 MHz band covering 12 circles. It also suggested Rs 960 crore per MHz for unpaired spectrum in the 2,300 MHz band on a pan-Indian basis.

The central government earned Rs 65,789 crore from spectrum auctions in 2016. The bands sold were 2G, 3G, and 4G.

India's rural mobile phone base slips further, shows Trai report

India’s mobile phone user base may have improved a bit in April after a steep fall in March, but Telecom Regulatory Authority of India (Trai) numbers show the rural subscriber base has consistently gone down since January. The rural mobile phone user base has eroded by 20 million since December.

Barring Reliance Jio, telcos are losing active subscribers. Data shows the active subscriber base is down to June 2018 levels. There are around 931 million active subscribers now (for the top three players) compared to 933 million in June 2018 and 915 million in May 2018. All other players put together have another 68 million active subscribers as of April 2019.

According to telcos and analysts, this is due to SIM consolidation happening after the minimum recharge plans were implemented by incumbents. “The rural penetration improved in the past few years. Most of the low revenue multiple SIMs were in those areas. Hence, the decline is an indication of the cleaning up that is happening,” said a senior executive of a telco.

As consolidation takes place of multiple SIM users choosing their primary SIM (operator), mobile number portability (MNP) requests, too, have stabilised. Analysts at BNP Paribas noted MNP requests have been largely stable in the past five months. In April, it was at 4.6 million. “MNP activity increased after the introduction of service validity packs by Airtel and Vodafone Idea, but the quantum of rise is not large considering almost 200 million subscribers might have been hit,” BNP Paribas noted.

India's rural mobile phone base slips further, shows Trai reportIndia's rural mobile phone base slips further, shows Trai reportIndustry net active subscriber base fell by 22.1 million month-on-month in April to 999.6 million. Airtel’s active user base declined by 3.7 million, while Vodafone Idea lost a massive 26 million active subscribers. Jio was the only player to add subscribers at 7.2 million, but its pace of addition has slowed down. Analysts at Motilal Oswal felt Jio’s gains could be attributed to Jiophone offtake. “For Airtel, the impact of minimum recharge plans appears to be subsiding. However, Vodafone Idea is likely continuing to witness a sharp decline in low-ARPU subscribers,” Aliasgar Shakir, research analyst at Motilal Oswal, said.

Vodafone Idea’s active customer base (based on visitor location register) of 342 million is now close to its reported subscriber base 334 million, indicating subscriber clean-up is largely behind, said Kunal Vora of BNP Paribas. The active subscriber market shares in April stood at 34.2 per cent for Vodafone Idea, 32.4 per cent for Airtel and 26.5 per cent for Jio. The two PSUs — BSNL and MTNL — together had 6.8 per cent share.

Jio continues to see higher growth predominantly in the rural circles, indicating continuing higher contributions to incremental subscriber addition from Jiophone. Airtel and Vodafone Idea’s mobile broadband adds remained weak in April. Jio saw some moderation with subscriber adds at 8.1 million, lower than in recent months. However, it was the only operator to report a positive number, driven by its strong growth in rural markets. According to analysts, weak demand around election time might have affected smartphone sales, in turn resulting in weak broadband subscriber additions.

Telecom panel tells Trai to review recommendations on 5G spectrum sale

The Digital Communications Commission, the highest decision-making body in the telecom sector, on Thursday asked the Telecom Regulatory Authority of India (Trai) to review its recommendations on 5G spectrum sale, scheduled to take place in the calendar year to auction 8,644 MHz of airwaves, and make available a higher amount of spectrum, besides approving the rollout of airwaves for 5G trials in 100 days.

“Trai should revisit the recommendations to see whether they are in line with Prime Minister Narendra Modi’s policy objectives of Digital India, broadband for all, and proliferation of 5G,” Telecom Secretary Aruna Sundararajan told reporters after the meeting of the DCC.

The Commission comprises senior officials of the NITI Aayog, Department for Promotion of Industry and Internal Trade, Department of Economic Affairs, Ministry of Electronics and IT, besides the Department of Telecom.

Telecom Minister Ravi Shankar Prasad had said India would hold auction for 5G spectrum and other bands this year.

The panel asked Trai, while reviewing its earlier suggestions, to ensure competition in the sector, given the fact there is extreme consolidation in the industry.

Because of harmonisation the department has released more spectrum, which can be offered for auction.

Spectrum harmonisation refers to the uniform allocation of radio frequency bands in a region.

DCC members are of the view that all spectrum should be auctioned because it is a valuable resource and unless it is used, there will be no benefit to society, an official privy to the information said.

Telecom panel tells Trai to review recommendations on 5G spectrum sale

Trai is expected to revert with its review, which also includes putting the available spectrum for sale, in a month.

Trai had recommended a pan-Indian base price of Rs 492 crore per MHz for 5G radiowaves, while lowering the base price of frequencies that remained unsold in the 2016 auctions.

Airwaves in the 3,300-3,600 MHz 5G band will be auctioned in the block size of 20 MHz.

The reserve price for the premium 700 MHz spectrum, which went unsold in the 2016 auctions, was reduced by more than 40 per cent to Rs 6,568 crore per MHz all-India from Rs 11,485 crore in 2016.

Trai recommended a base price of Rs 4,651 crore for paired spectrum in the 800 MHz band covering 19 circles, Rs 1,622 crore per MHz for the 900 MHz band covering seven circles, Rs 3,399 crore per MHz in the 2,100 MHz band covering 21 circles, and Rs 821 crore per MHz in the 2,500 MHz band covering 12 circles. It also suggested Rs 960 crore per MHz for unpaired spectrum in the 2,300 MHz band on a pan-Indian basis.

The central government earned Rs 65,789 crore from spectrum auctions in 2016. The bands sold were 2G, 3G, and 4G.

On the 5G trials, the commission has agreed on single-window clearance for auctions for conducting 5G trials for a period of one year with a provision for extension. Currently, the companies can conduct trials for a period of three months only.

A panel headed by IIT Kanpur Director Abhay Karandikar was tasked to make recommendations related to licensing, the amount of airwaves, and other aspects related to enabling experimental spectrum for conducting 5G trials. He suggested the spectrum should be made available for at least one year. His report has been accepted by the telecom panel.

The DCC deferred the decision on the cumulative penalty of Rs 3,050 crore on Airtel, Vodafone and Idea to its next meeting because the finance secretary had to leave for another meeting.

Drop in mobile user base due to multiple factors, no cause for worry: TRAI

The recent drop seen in the mobile subscriber base is not a cause of worry nor does it call for the regulator's intervention as the fluctuation is on account of multiple factors like minimum recharge plans and will correct in due course, TRAI Chairman R S Sharma said.

India's total wireless subscriber base fell to 1,161.8 million on March 31, 2019, shedding 21.87 million users over the previous month, according to data released by the Telecom Regulatory Authority of India (TRAI) recently. The overall tele-density in India declined to 90.11 at the end of March from 91.86 in February.

Sharma, however, sought to allay any concern on the headline subscriber numbers.

"These are fluctuations which happen due to multiple factors, like telecom operators have started monthly minimal recharge to keep the connections live...that could have led to inactive connections getting removed. These are minor variations which I don't think are major fluctuations, and I don't think it is a cause for worry," Sharma told PTI.

Asked if the regulator intends to intervene to contain the situation, he said, "There is no question of intervening."

"The way data services are being used by the people, I am sure this market is not going to stop. The fluctuation in numbers are due to multiple factors so these corrections, they take place due to certain factors. They are not a matter of concern," he emphasised.

Mobile subscriber base of Vodafone Idea and Bharti Airtel shrunk by nearly 14.5 million and 15.1 million, respectively, as of March (over the previous month) while Reliance Jio added 9.4 million users in the month, according to the TRAI data.

"Total wireless subscribers declined from 1,183.68 million at the end of Feb-19 to 1,161.81 million at the end of Mar-19, thereby registering a monthly decline rate of 1.85 per cent," it said.

The wireless subscription in urban areas declined to 650.49 million in March-end from 656.57 million in February-end, and rural user base also plunged to 511.32 million from 527.11 million during the period.

Industry body Cellular Operators' Association of India (COAI) also has been of the opinion that not too much should be read into the drop in mobile subscriber numbers for March, as the reduced numbers are a result of consolidation of multiple, unused SIMs and weeding out of low-usage connections by operators.

Trai's spectrum prices high due to inconsistency in principles, finds study

The spectrum price recommended by regulator Trai is high due to inconsistency in the principle applied by the watchdog for calculating base rates, a joint study by ICRIER and Broadband India Forum has claimed.

"Our analysis ... on the pricing of the 1800 MHz band finds that a bulk of the reserve prices not only continue to remain high, there are also inconsistencies in the principles applied," the joint report by Indian Council for Research on International Economic Relations (ICRIER) and Broadband India Forum said.

It said that the Telecom Regulatory Authority of India (Trai) has placed immense value on the bid price of previous auctions and this method does not always account for changing market conditions or operator circumstances even if the gap between two subsequent auctions is not significant.

An email query sent to the Telecom Regulatory Authority of India (Trai) remained unanswered.

The regulator in December 2018 recommended the auction of about 8,644 MHz of telecom frequencies, which include radio waves for 5G services, at an estimated total base price of Rs 4.9 lakh crore.

Trai has suggested a base price of Rs 3,285 per megahertz for paired spectrum in 1800 Mhz band.

For the premium 700 Mhz band, Trai has said that its "reserve price ... should be equal to 2 times of reserve price of 1800 MHz spectrum band", resulting in about 43 per cent reduction in the price of this band to Rs 6,568 crore per Mhz for paired spectrum.

In 2016, the government had fixed the base price of 700 Mhz band at Rs 11,485 crore per Mhz, which was around four times the price of 1800 Mhz band.

The radio waves in lower frequency bands cover more area compared to signals transmitted in higher frequency bands and accordingly their prices also increase.

Incumbent telecom operators Bharti Airtel and Vodafone favour spectrum auction with some gap as the industry does not have much appetite for airwaves given the financial crisis in the sector.

Trai has also been applying index pricing formula to determine the spectrum price based on bank interest rates.

The ICRIER-BIF report said that the indexed value does not account for the supply of spectrum in past auctions, the number of bidders, the status of bidders (expiring licence), and fragmentation of spectrum offered etc.

"Designing spectrum auctions are always fraught with risk. The over-reliance on reserve prices may not necessarily yield successful market outcomes. There are several other factors that influence auction outcomes such as bidder turnouts, market conditions and choice of auctioning agent," the report said.

It has suggested that the government should hold Combinatorial Clock Auctions in which spectrum is packaged along with additional rules that may suit industry based on their business case.

The government so far has been using Simultaneous Multi-Round Ascending Auction method where bids are invited for spectrum only in a circle based on the base price of the spectrum and keeps moving higher based on the number of bids placed.

"Spectrum auctions in India should try to balance transparency in allocation and revenue expectations for the government. Setting high reserve prices could actually be counterproductive. It could reduce government revenue and stifle sector growth. Building trust between operators and government is crucial for long-run viability of the sector," the report said.

Trai hopes to find solution for TV set-top-box interoperability by year-end

Broadcast regulator Trai Friday said it is examining possible solutions for achieving TV Set-Top-Box (STB) interoperability, and expects to make headway with industry involvement by the end of this year.

The move assumes significance since consumers get tied down to their service providers, as STBs are bound to the operator. When a consumer wants to change the service provider, they are forced to invest in a new STB, adding to the cost burden. Besides, STBs of old service providers remain unused, and ends up as electronic waste.

Telecom Regulatory Authority of India (Trai), in a statement, said it conducted a workshop to discuss 'downloadable' Conditional Access System (CAS) based solution' to implement STB interoperability.

Citing its new framework for broadcasting and cable services that allows consumers to pay only for channels they wish to see, the regulator said that choice also entails freedom to avail better service offerings in the market.

"As a logical next step towards this objective, Trai has been exploring the important issue of interoperability of STB....Interoperability of STB is also desirable for creation of open and competitive market bringing in advantage of volume of scale and consumer preference," Trai said.

It is examining solutions for achieving such interoperability in broadcast network.

Stating that the authority is working with system integrators, vendors, CAS providers and other stakeholders for technical discussions, Trai said that the detailed consultations will be followed by a Proof-of-Concept (POC) testing of the proposed solution.

"A successful POC testing will address the vital concerns of industry stakeholders related to security, piracy and practicality...Trai will further deliberate with the stakeholders to identify the gaps, if any, in the proposed solution before taking up the Proof-of-Concept testing," it said.

Trai hoped that involvement of the industry stakeholders would help in developing acceptable solution for STB interoperability by the year-end.

The Broadcast regulator has been engaging with the stake holders for over two years now to introduce STB interoperability, and the regulator noted that the issue comes with its own set of challenges.

The workshop on the issue that was conducted on Thursday and was attended by 60 participants including broadcasters, Direct To Home (DTH) operators, Multi Systems Operators (MSOs), vendors, CAS suppliers, STB manufacturers and system integrators.

Speaking on the occasion, Trai Chairman R S Sharma asserted that consumer interest remains the focus of the authority.

"The interoperability brings the economies of scale, freedom of choice, promotes competition that results in overall growth of the sector", he said.

STB interoperability crucial to empower the consumer and enable growth in the broadcasting sectors.

"Based on the experience of Mobile Number Portability, it is certain that interoperability will promote competition and will be a win-win for all stakeholders on medium to long term basis," Trai statement added.

TRAI ropes in BECIL to audit systems of cable, DTH firms under new norms

Sector regulator TRAI has roped in state-owned Broadcast Engineering Consultants India Ltd (BECIL) for conducting audits to ensure that cable TV and DTH companies are complying with its new regulatory norms.

The Telecom Regulatory Authority of India, which had earlier warned of action against operators found to be flouting the new tariff order and regulatory regime, said that audits in this regard will begin soon.

"BECIL will be conducting the audit on behalf of TRAI to ensure compliance with the new regulatory framework. We request all distribution platform operators (DPOs) to ensure compliance with the new regulatory framework in letter and spirit," TRAI Secretary S K Gupta told PTI.

Gupta said that a decision is being taken on the companies that would face the audit of systems.

"DTH and Cable TV operators will be randomly selected and audit will be conducted to see if they are in compliance with the new regulatory framework," he said.

It is pertinent to mention here that over the last few days, TRAI has pulled up a number of operators, both Cable TV and DTH service providers, for violation of rules, as it acted on consumer complaints pertaining to specific offerings, grievance redressal helplines, and arbitrary migration of subscribers with valid long-term packs to new plans.

In some of the cases, TRAI noted that the players were forcing channels and package schemes to the consumers, and subscribers were not able to exercise their choice.

Most recently, TRAI rapped direct-to-home (DTH) operators Tata Sky, Dish TV, and Sun Direct TV, for failing to abide by the rules, particularly pertaining to the migration of subscribers who had long-term packs.

TRAI Chairman R S Sharma had, last month, said that the regulator plans to initiate "audit" of subscriber management and other IT systems of errant operators. Sharma had said consumer choice and consumer interest are "non-negotiable" and "cannot be compromised" and that companies not adhering to rules will have to face the consequences.

The audit planned by TRAI will look at multiple aspects including subscriber management system and billing, and also determine whether consumers are indeed getting their choice of channels, be it bouquets or a la carte.

"The audits will start very soon," Gupta said.

Trai has unveiled a new tariff order and regulatory regime for the broadcast and cable sector to facilitate consumers to opt for channels they wish to view and pay only for them. It had said every channel should be offered a la carte, with a transparent display of rates on electronic programme guide.

The regulator also clarified that DTH and cable operators cannot force consumers to go in for only predefined packages or bouquets.

Bharti Airtel, Vodafone Idea see rise in fixed-line subscribers in February

Bharti Airtel and Vodafone Idea witnessed a rise in fixed-line subscribers at a time when the overall wireline users in the country continued to decline in February, according to data published by the Telecom Regulatory Authority of India (Trai).

“Wireline subscribers further declined from 21.79 million at the end of January to 21.72 million at the end of February,” the report said. Net decline in the wireline subscriber base was 0.07 million with a monthly decline rate of 0.36 per cent.

The share of urban as well as rural subscribers in total wireline subscribers was 85.95 per cent and 14.05 per cent, respectively, at the end of February 2019. Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd held 66.77 per cent of the fixed-line market, while Bharti Airtel and Vodafone Idea held 18.95 per cent and 1.41 per cent share, respectively, as on February 28.

So far as net wireless additions are concerned, Reliance Jio and BSNL drove the telecom growth in the country by adding a net of 8.63 million mobile subscribers in February. The telecom subscriber base grew marginally to 1.2 billion but the rest of the operators, including Bharti Airtel and Vodafone Idea, lost a big chunk of their respective subscribers, as per data.

The number of telecom subscribers in India increased marginally to 1.2 billion at the end of February against January, according to the Trai data. The sector, dominated by wireless connection, recorded an increase in the mobile services subscriber base to 1.18 billion in February.