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Cast Net far and wide: Trai

The Telecom Regulatory Authority of India (Trai) has stressed the need for allocation of spectrum for wireless broadband “on a priority basis”.

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Asks for allocating spectrum for broadband on a priority basis

NEW DELHI: The Telecom Regulatory Authority of India (Trai) has stressed the need for allocation of spectrum for wireless broadband “on a priority basis”, in its 10-year achievement document. Trai, which was set up in 1997, has brought out a paper tracing its 10-year journey, the landmarks, challenges and the path ahead.

Mobile telephony subscriber numbers are growing by 7-8 million a month in the country, with the total wireless user base close to 210 million now. But, fixed broadband growth has been slow so far mainly due to high cost of PCs, and the total number of broadband subscribers is just 2.56 million in the country.

Naming digital divide as a major concern for the country, the regulator has noted that rural tele-density is around 5% whereas urban tele-density is approximately 50%. “The wide gap in tele-density needs to be addressed on priority,” Trai said. As for low internet and broadband penetration in rural areas, the regulator said, “This requires allocation of spectrum for wireless broadband on a priority basis”.

According to Trai, 80% of the new subscribers for voice are estimated to be wireless. “Use of wireless will also increase broadband penetration.”

Among the challenges, the regulator has listed ‘declining average revenue per user (ARPU)’, `quality of service to customers’, and `spectrum management’, among others. Trai chairman Nripendra Misra has said, “In response to rapid changes in technology, intense competition and other dynamic changes in the sector supported by the booming economy, major initiatives from the regulatory authority are on the anvil.”

The regulator has pointed out that the telecom sector has in India has shown exponential growth. While tele-density grew only by 1.92% in 50 years (1948 to 98), it has increased by 18% in just 10 years of Trai’s existence. Tariffs have also gone downhill from 1997 to 2007.

In 1997, local calling rates on mobile phones were as high as Rs 16.80 per minute, and now it’s down to as low as Re 1 per minute. STD call tariffs have declined from Rs 30 per minute to Rs 2.40 per minute. And ISD calls are down from Rs 75 per minute to Rs 6.40 per minute.

India is now number one in the world, in terms of net addition of mobile subscribers per month. As for minutes of usage in mobile segment, India is second after the US.

 

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