GeneralTelecom Commission to consider TRAI suggestions on broadband and VNO

Telecom Commission to consider TRAI suggestions on broadband and VNO

The Telecom Commission is set to discuss suggestions made by TRAI regarding improvement of broadband services and introduction of virtual network operators (VNO). The meeting by the inter-ministerial panel will take place on July 14 and could lead to a reduction in landline call rates.

TRAI recommended the license fee for fixed line broadband services be done away with for at least 5 years, and further specified measures to accelerate the growth of high speed internet. If the proposal is accepted, it would result in landline calls becoming cheaper.

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One of the measures suggested was a scheme to offer incentives such as a laptop, desktop or tablet as a package along with the network. Such a system would exempt revenue collection from the applicable license fee for a minimum of 3 years.

Virtual network operators are an untried model in India. If allowed, they would act as middlemen between customers and network providers, leasing bulk talk time and bandwidth at wholesale rates from different companies and reselling them to consumers.

The introduction of such vendors might benefit both in the long run. Companies could reduce the load of advertising and operational costs, such as the building and maintenance of infrastructure. Consumers would be presented with one bill for a number of services.

Also Read: Telephone connections surpass one billion in India: TRAI

TRAI is clearly trying to increase the accessibility of high-speed internet. Its earlier report on telecom subscription showed that out of 104.96 million consumers, only 15.56 million people had fixed wired connections, 88.96 million relying on phones or dongles for web access. This corresponds with the decline in landline users, mobiles rendering them obsolete.

Perhaps if the Telecom Commission implements the suggestions provided, it could result in resurgence of cheap landline calls and wired broadband.

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