COAI Urges New Government Action on Telecom Challenges: Spectrum, Fair Policy, AI, Theft

As the new government under Prime Minister Narendra Modi embarks on its tenure, the Cellular Operators Association of India (COAI) has outlined a comprehensive set of recommendations to address critical issues facing the telecom industry. This analysis delves into the key areas highlighted by COAI and their potential impact on the telecom sector's growth and sustainability.

Spectrum Allocation and Pricing

IMT Spectrum Availability and Spectrum Costs Consideration

COAI emphasizes the need for adequate spectrum availability, particularly in the 6 GHz mid-band, which is vital for expanding 5G networks. The organization points out that acquiring an additional 1200 MHz from the 6 GHz range is essential to meet the growing demand for 5G services. A GSMA report suggests that utilizing this spectrum could save India up to $10 billion annually in 5G network deployment costs.

Furthermore, COAI calls for a strategic allocation of spectrum for 6G innovations, referencing initiatives like the Bharat 6G Alliance and Bharat 6G Vision. They argue for a revision of spectrum pricing to align with global standards, highlighting that India's spectrum costs are disproportionately high compared to countries like China and Germany. Addressing these pricing issues could alleviate financial burdens on telecom service providers (TSPs), enabling more extensive network rollouts and better service quality.

Fair Share Usage Policy

The Growing Concern over Fair Share Usage Policy

COAI underscores the need for a fair share data network usage policy, wherein large traffic generators (LTGs) contribute a share of their revenue to TSPs. This proposal stems from the significant strain LTGs place on telecom networks, leading to quality of service (QoS) issues. The organization argues that while smaller players should be exempt, major data consumers should compensate TSPs for the infrastructure they rely on. This measure could address the estimated INR 10,000 crore loss to the government due to unbalanced data traffic generation and usage.

AI and Digital India

Making AI as the Foundation for Digital India

The role of artificial intelligence (AI) in India's digital transformation is another critical area highlighted by COAI. They propose the implementation of structured input processes for AI, ensuring data uniformity and quality. The use of embedded AI systems to standardize and tailor data to India's diverse context is seen as essential for sustainable and inclusive growth. This approach could enhance the utility of AI applications, supporting various sectors and driving economic development.

Testing and Certification Challenges

Addressing Testing and Certification Challenges

COAI acknowledges the government's efforts to simplify testing procedures for telecom equipment but urges further actions. Recommendations include increasing the number of test labs, exempting customs duties for products entering India temporarily for testing, and allowing local scrapping of unfit products. Adopting international testing standards could also ease the burden on businesses, fostering a more conducive environment for telecom manufacturing under initiatives like Atmanirbhar Bharat.

Telecom Equipment Theft

Telecom Equipment Theft

The rising incidents of telecom equipment theft pose a significant challenge to TSPs. Despite various preventive measures, the sector faces substantial financial losses and service disruptions. COAI recommends categorizing such theft as a cognizable and non-bailable offense and calls for coordinated efforts between the Department of Telecommunications (DoT) and state authorities to prioritize these cases and enhance protection for telecom infrastructure.

Conclusion

COAI's recommendations to the new government encompass a broad spectrum of issues, from spectrum allocation and fair share usage policies to AI implementation and equipment theft prevention. Addressing these concerns could play a pivotal role in strengthening India's telecom industry, supporting its transition to a digital economy, and ensuring sustainable growth. The government's response to these recommendations will be crucial in determining the future trajectory of the sector.