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Letters to BS: Telecom sector needs help, IUC regime can wait a bit longer

The IUC must take into account all cost components including capex and spectrum charges borne by the operator

Business Standard 

Sharp reduction in capex and an increase in operating profit led to a 49% jump in operating free cash flows on a sequential basis
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This refers to the editorial “Mixed signals” (December 20). The editorial rightly makes the point that a thorough analysis needs to be carried out before implementing the zero (interconnect usage charge) regime from January 2021. Though the Telecom Regulatory Authority of India believes that traffic symmetry would be achieved by the end of next year, the whole thing can change with the changing market share of telcos, more so when a new service provider comes up or an incumbent operator winds up. Also, given the current distress in the telecom sector, there should be no hurry in introducing the BAK (bill and keep) regime.

As everything comes at a cost, an operator needs to be suitably compensated for its network usage for the calls originating in another network. The must take into account all cost components including capex and spectrum charges borne by the operator. As telcos are in need of help to tide over the current crisis, the introduction of zero regime should have to wait a bit longer.

Sanjeev Kumar Singh, Jabalpur


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First Published: Sun, December 22 2019. 22:05 IST
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