COAI says telcos provided adequate relief to low-income users

The Cellular Operators Association of India (COAI) told the Telecom Regulatory Authority of India (TRAI) that telecom operators have provided adequate relief to low-income users despite the financial stress, adding that they cannot do more, news agency PTI has reported.

The industry body on April 9 told TRAI that expecting operators to extend the benefit to all prepaid users is not appropriate.

If the TRAI and the government still feel the need for extension of benefits to all prepaid feature phone users, then the same should be provided in the form of a subsidy to the telecom sector like many other essential services, the telcos association added.

“This could be adequately compensated from the USO Fund where more than Rs 51,500 crore is lying unutilised as on March 31, 2020,” COAI said in a letter to TRAI, according to PTI.

The industry association said that adequate measures have been taken by telecom operators to support low-income users, who genuinely need help to stay connected, despite the financial stress being faced by the sector.

Providing benefits indiscriminately even to privileged customers would amount to “unjustified subsidy” to a larger section “at a steep loss to industry”, it has argued.

COAI also said that the value of benefits announced by telcos for low-income users, including extension of validity and talktime credit, is estimated to be over Rs 600 crore, even on conservative basis.

As per reports on April 8, the COAI has also written to the Department of Telecommunication (DoT) seeking clearance of dues to the tune of Rs 20,000 crore owed by public sector units (PSUs) such as Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) to its member companies.

―Money Control