Telecom Regulatory Authority of India (TRAI) will initiate an in-depth discussion with the telecom service providers on general principles related to spectrum including its valuation methodology, trading, sharing and leasing in the year 2019. TRAI chairman R S Sharma has clarified that the upcoming deliberations will not have any bearing on the past recommendations of TRAI on the auction of radio-waves.
Sharma further stated that the discussions assume significance as now they have a new National Digital Communications Policy in place and there are a lot of statements in the policy which will require deliberations. He said “we wanted to consult with the telecom service providers to figure out their view point on priority areas.” He also noted that other issues that will be taken up by the regulator next year include fiberisation, redesigning of Universal Service Obligation Fund (USOF) and designing of broadband readiness index for states -- a concept enshrined in the National Digital Communications Policy.
The telecom sector has been hurt by falling tariffs, eroding profitability, and mounting debt in the face of stiff competition triggered by disruptive offerings of Reliance Jio, owned by Mukesh Ambani. The industry has sought urgent relief measures for the troubled telecom sector, entailing debt restructuring, cut in levies like licence fee and spectrum charges, and release of GST input tax credit locked up with the government.