Telecommunication: Wider networks

In November, the Telecom Commission agreed in principle to new norms suggested for a cap on spectrum cap for operators. The telecom regulatory authority has suggested the cap be based on all available spectrum — including unsold spectrum and spectrum surrendered by the operator — rather than the current practice of basing it on the spectrum auctioned to all the operators.

In a landmark policy change, TRAI had decided service providers would require to pay subscribers Rs 1 per call drop experienced on their network, subject to a cap of Rs 3 a day per subscriber. The Cellular Operators Association of India, the Association of Unified Telecom Service Providers of India and 21 telecom operators went into appeal but the court hasn’t stayed the decision.

Looking forward

Reliance Jio Infocomm’s launch of 4G services in March is expected to usher in higher competitive pricing among the four major telecom players, including Bharti Airtel, Vodafone and Idea.

Analysts say telecom operators, however, will continue to focus on rolling out 2G services, especially in rural areas, as demand for 4G services will be limited to major cities.

The proposed changes in spectrum cap norms will facilitate more trading deals. The penalty for call drops will also be effective this year, unless Delhi High Court rules against the regulatory authority TRAI’s order.

One thing that didn’t happen Call drops and net neutrality, big issues last year, remain unresolved debates heading into 2016.