New Delhi: Telecom firms have opposed the public WiFi model recommended by Telecom Regulatory Authority of India (Trai), saying it will adversely impact the debt-ridden industry and compromise national security.
"The proposal to sell internet services without a licence will be a complete bypass of present licensing framework (and) detrimental to massive investments already made in spectrum, telecom infrastructure.... Additionally, we believe it will seriously compromise national security," Rajan S. Mathews, director general of Cellular Operators Association of India (COAI), said in a letter to telecom secretary Aruna Sundararajan.
Based on existing rules for cyber cafes, Trai has recommended that a new set of players, to be called Pubic Data Office Aggregator (PDOA), should be allowed to resell internet services through PCO type of set-ups that will be called Public Data Offices. Trai has recommended that like cyber cafes, which provide internet access to public after registering themselves, PDOA should be allowed to provision internet access services after registering themselves with the telecom department.
In the letter dated 5 July, COAI said implementation of Trai's recommendations on public WiFi will lead to a non-level playing field between telecom operators who hold licence and those who will provide internet service without a licence.
According to COAI, internet services can be provided by telecom licence holders only. "Creation of last mile access, wireline or wireless, to provide internet services to the end customer has been permitted under the licence. However, the same activity has now been proposed to be performed by the PDOAs," Mathews said in the letter.
A licence is required even if the internet services are provided to the end customers using de-licensed spectrum band, but no such condition has been imposed on unlicensed entities, who will make use of de-licensed bands for commercial purposes.
The COAI has alleged that Trai's recommendations on public WiFi, if implemented, will impact the government's revenue. "This would also lead to substantial loss to the exchequer as the PDOAs and PDOs would not pay any licence fee or spectrum usage charge (SUC), or for that matter upfront payment for spectrum, to the government. Going down this path, it would only be fair and legally tenable if the government also exempts license fee and SUC for licensed operators," Mathews said.
If the government feels that PDOAs should be allowed for rural areas and villages, then it should be mandated through a licence. "Further, such incentive should not be limited only to PDOAs but should also be extended to all service providers...who provide internet services (both wired or wireless) in the rural areas rather than promoting a particular business model," Mathews said, adding that revenue earned by service providers from rural internet should be exempted from regulatory levies.
The COAI, whose members include Bharti Airtel Ltd, Reliance Jio Infocomm Ltd, Vodafone India, Idea Cellular, etc., has been opposing implementation of Trai's suggestions for public WiFi since 12 April 2017.