The voice of more than 900 million consumers has not been heard in the entire telecom debate. This is even as the Telecom Regulatory Authority of India (TRAI) Chairman, Dr Rahul Khullar, made a presentation to the Empowered Group of Ministers (EGoM) on telecom on July 12 on the impact of the spectrum auction on mobile tariff rates.
Mobile phones have played a great role in enhancing connectivity, thereby galvanising economic activity at all levels. Mobile phones have transformed lives in a myriad ways, ranging from increasing family ties, being a business tool for the self-employed, bringing quality healthcare at the doorstep through telemedicine, and benefiting the lowest economic strata of rag pickers and roadside vendors.
Nothing should be done to dent this accessibility and affordability.
The Government and regulator should see mobile telephony as a GDP multiplier instead of a golden means of raising revenue through one-time sale of licences and spectrum. If mobile telephony is seen as a facilitator of economic activity, the Government is very likely to raise far more resources through indirect taxes over a period of time.
CONSUMER INTEREST
The past few months have seen many developments in the telecom sector, and at this point the Government is on the threshold of taking decisions that will determine the shape of telecommunications in India for decades to come.
Unfortunately, in the entire decision-making process relating to spectrum allocation and pricing, consumer’s interest has received short shrift. Of all the stakeholders in this entire equation — the Government, industry and consumers — the first two appear to have had an adequate say. In comparison, the voice of 900 million consumers has not been sufficiently heard.
Consumers are of the view that there should be transparency and openness in the decision-making process. At this time, industry, government and regulators appear to be talking to each other and appraising each other of their respective positions on each relevant issue, without involving the consumer. This has led to an undermining of the rights of the consumer by both the government and industry.
This lacuna can be filled only if there are public hearings, as against advertisements being issued at phenomenal cost to show that the spectrum pricing and allocation process has been completed.
The TRAI has had one just round of such public hearings. There is a paramount need for many more such public hearings, especially in remote locations such as the North-East and the Andaman and Nicobar Islands. This is an ideal way of providing a platform to consumer organisations and other stakeholders.
ENCOURAGE COMPETITION
We feel proud that with more than eight operators in various telecom circles, India has one of the lowest call rates around the world. From Rs 15 a minute in 1999, competition in the telecom sector has brought down call rates to 30 paise a minute. It is competition that has driven down prices and given the consumer a choice.
Even as the Government attempts to raise revenue from the sector, competition should be encouraged, whether it is through lowering the reserve price for spectrum, or ensuring a level playing field for all operators.
(The author is a consumer activist and Founder, Consumer Online.)