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G. Rambabu

Things can't remain too quiet for too long. eWorld traces the tracks of controversy in the telecom scene.

TELECOM correspondents in New Delhi had reason to cheer recently.

After months of "inactivity" in a sector that is well known for the regular controversies that spurt up, the journos finally got just what they had been waiting for — yet another fight between a section of the industry and the Telecom Regulatory Authority of India (TRAI). Enough fodder to keep the stories coming!

It all began on one rainy Wednesday - July 16 to be precise - when the TRAI issued a consultation paper on "unified licensing" inviting comments from the various stakeholders. In other words it mooted the idea of merging the basic and cellular licences into one common licence, something that several countries have moved/are in the process of moving to from a service-specific licence. Little realising that it would unleash a storm.

To be fair to it, it was only doing what was required of it as per the TRAI Act. The Department of Telecommunications (DoT) had sought the Authority's opinion on how to bring about a "unified licence" regime, and under the Act, the TRAI had to provide its recommendations whenever asked for, after a detailed study and consultation. So it did.

However, the timing and scope of the proposed new licence was something that did not go down too well with the private cellular operators who have been fighting a pitched battle with the DoT regarding the policy to allow basic operators to provide limited mobility services For more than two years now, the issue has been dealt with, first by the Telecom Dispute Settlement Tribunal (TDSAT) and then by the Supreme Court, which again referred it back to the Tribunal. A final order is expected anytime now.

As reasoned by the Authority, owing to technological developments, reduction in cost of wireless technologies, quicker rollout, and growth of wireless subscribers, the present arrangement of separate licensing and regulatory framework for Basic and Cellular Services needs a review. While a significant amount of unification in terms of licence conditions has already taken place i.e., in terms of annual licence fees, providing mobility (though to different extent), access to Universal Service Obligation Fund etc., there still exist certain differences on issues such as varying amounts of entry fee paid, spectrum allocation etc, that needs further discussion.

"A Unified licence for wireline and wireless services (including Cellular Mobile) would provide greater efficiency as a result of optimum sharing of infrastructure and resources. From such considerations of efficiency that would bring down the cost of providing services has arisen the need for consulting the stakeholders on creating a Unified Licensing framework. This consultation paper aims to raise such existing issues that arise while considering the framework for migrating from a present service-specific to a Unified license framework. It also raises certain policy and regulatory issues that would arise in the future as a result of a unified licence", it noted.

Although the Union Communications Minister, Arun Shourie, has gone on record for quite sometime now about the need to introduce a unified licence regime, the private cellular operators sat up when the TRAI issued the consultation paper. While all along they were under the impression that the Minister was talking of common licence for all telecom services - basic, cellular, long distance and Internet, the TRAI restricted itself to only two services. They made no bones about their unhappiness.

In a letter to the TRAI, which was subsequently released to the press, the Cellular Operators Association of India (COAI) noted: "The Industry and its stakeholders are deeply concerned at the abrupt release of this Consultation Paper and its timing. The Authority is well aware of the imminent decision of the TDSAT which is undertaking a de novo review ordered by the Supreme Court. There is a great risk of the timing of this Consultation Paper being seen as attempting to make this review ordered by the Supreme Court infructuous."

The letter further stated that the narrow scope of this unified licence leads to speculation and concerns that this move is intended to favour the basic operators and their disputed limited mobility licences. Questions were also raised about the "short time frame" given for responses to this consultation, given the fact it is "obviously a crucial and important issue that will require preparation by an Industry already confronting complex legal work at the TDSAT and the Supreme Court".

A colleague from the journo fraternity added fuel to fire by quoting unnamed sources to state that the private cellular operators are determined to drag the TRAI to court for issuing the consultation paper.

Pradip Baijal, who just a couple of months ago had taken over as the TRAI chairman, was not one to be cowed down. He had grown accustomed to threats and disruptions during his earlier stint as Disinvestment Secretary. Treating it like a personal attack, he publicly stated that the Authority had no intention of withdrawing the consultation paper and that "certain" sections of the industry that are used to disrupting "progress in the telecom sector" could not cow him down.

For close to a week, both the sides used the press to drive home their point. It once again promised to be a repeat of the TRAI vs COAI battle that had taken place last year when M.S. Verma was at the helm of affairs at the Authority. Telecom journalists were once again sure that they would have bag loads of stories for sometime to come.

However for COAI, Baijal's reaction was so sharp that the COAI had to hastily clarify that it had no intentions of suing TRAI, and the only intention was to raise a few concerns that they felt. The TRAI Chairman, on his part, extended the date for replies to the paper from August 7 to August 30 by which time the TDSAT would have issued its order on the limited mobility case.

While the controversy has blown over for the time being, both the sides have learnt quite a few lessons from this episode.

The COAI has realised that it has to be more tactful in dealing with Baijal in future. Going to press with their problems may not have been a good idea after all, with the TRAI Chairman having honed his media skills while in the Disinvestment Ministry. As for the TRAI Chairman, unlike his previous assignment, "bulldozing" his way will only generate more controversies. Something that may not be desirable in a sector that is known to be controversy-ridden.

The final consultation process is due to be held in September after which the Authority will come out with its recommendations for the DoT to begin the process. That's when the disagreements are likely to come out in the open once again. But this time around, it will hopefully be more subdued.

grambabu@thehindu.co.in

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