COAI bats for 2G, 3G revenues segregation theory

COAI bats for 2G, 3G revenues segregation theory

New Delhi: GSM operators’ group COAI strongly supported DoT proposal to have separate revenues for 2G and 3G services, adding that this model will also speed up 3G roll-out in the country.

COAI Director General TV Ramachandran said that segregation of 2G revenues was not only possible but also desirable, as it would push operators to expeditiously enhance their 3G footprint (on account of lower usage charges for 3G services), thus benefiting the consumers and the country in terms of broadband availability.

“This was also an excellent way for the Government to incentivise faster roll-out and availability of 3G services to deliver benefits of broadband to the Indian consumers," he added.

Ramachandran further said that since 3G spectrum was being acquired through an open bidding process, the current market value of the 3G spectrum would be correctly reflected in the final bid price. “Therefore, it is only the administrative charges for spectrum usage that are required to be recovered through the annual revenue share levy," he clarified.

COAI draws attention to the fact that the dual technology clause allowed operators to segregate revenues for CDMA and GSM revenues. Ramachandran said that revenues for 3G services, which were also run on WCDMA, can similarly be differentiated.

He also gave the example of the UK where segregation of 2G and 3G services is practised. While Hong Kong too followed segregation model, it is not preferable due to the complexity involved, said COAI.

COAI said the revenue break-up can be implemented in two simple ways as reference either by traffic-based approach or call data record (CDR) approach.