The Department of Telecommunications DoT has decided to allow Broadband players to offer voice services under the new unified licence norms.
The operators will have to fulfill eligibility criteria that includes a payment of Rs 1,658 crore to the government for migrating to a unified licence.
The Telecom Commission TC has endorsed the telecom regulators view that an Internet Service Provider with Broadband and Wireless Access BWA can migrate to Unified Licence,hence,would be entitled to provide voice services. This was later received by the DoT, said telecom secretary R Chandrashekhar.
This will benefit a large number of broadband players,including Reliance Industries-backed Reliance Jio Infocomm that had won BWA spectrum in 2010 auctions.
Currently,broadband or 4G operators can only offer non-voice services. 4G is a successor to the 3G and 2G families and is expected to be five times quicker than the 3G services in the country.
This decision,however,will increase competition for voice providers. Voice accounts for almost 85 per cent of Indian carriers revenues and any competition in that segment will impact their revenues.
The Cellular Operator Assoiciation of India COAI,industry body for GSM players,has,in a letter to DoT secretary,said that they are greatly concerned and distressed by the move.
In the letter,the association also alleged that this will give undue benefits to a set of private parties.