The government will apprise the telecom regulatory authority of India (TRAI) of the ‘’alarming decline’’ in government revenue due to its recent tariff orders. It will also inform the regulator that its recent orders will have overall negative impact on the growth of the industry.
This was decided in a meeting of the full Telecom Commission, the highest decision making body in the telecom sector, held at Sanchar Bhawan today.
Reliance Jio is offering voice and data free since September 5. This forced its competitors to reduce tariff and overall revenue of the industry declined. Telcos pay a percentage of revenue as Spectrum Usage charge to the government. Consequently, the government revenue has also declined.
Though Telecom Commission hasn’t named any company, it is clear that it is indicating towards TRAI approval of Jio plans.
The Commission has also noted that the overall debt of the industry is up to Rs 5 lakh crore. If Telcos’ revenue decline sharply, it will be difficult for Telcos to pay Spectrum charges and instalments.
It is mandate of the TRAI to ensure overall health and growth of the industry.