COAI demands public utility service tag for telecom industry

Telecom industry is vital for the socio-economic development in the country and should be given the status of a public utility service, the Cellular Operators Association of India (COAI) said today.

"We believe it is the time that this industry is recognised and is given the status of a public utility service and given the benefits of an infrastructure sector," Rajan S Mathews, director general, COAI, said in a statement.

Mathews said that the scenario has changed unlike few years back when it was believed that only public sector company could provide connectivity for the rural and remote areas.

"It is the private players who have been fast reaching the remote and rural areas of the country," he said, "With this, the private mobile industry is extending the benefit of the latest technology and providing PURA-Provision of Urban Amenities in Rural Areas."

Referring to the subscriber data released by the Telecom Regulatory Authority of India (Trai) for the month of January, the GSM body said that the wireless industry had more than 95% of the total (806.13 million) subscribers as on January 31.

"COAI takes pride in announcing that 70% of the total of 258.93 million rural subscribers are connected to the cellular mobile services at most affordable rates due to efforts and huge investments made by its member operators," Mathews said.

He cited the TRAI data which states that wireless subscription in urban areas has increased from 501.30 million in December 2010 to 512.26 million at the end of Jan 2011, while rural subscription has increased from 250.89 million to 258.93 million.

This shows a significantly higher growth trend in rural subscription of 3.20% compared to the urban subscription 2.19%, he said.

"The rural connectivity achieved so far is due to the huge investments made by private operators with little aid from USOF," Mathews said.