Telecom operators are urging Trai to fasten up the process of fixing floor prices as it will revive the telecom sector from financial burden and attract investments in the future. Telecom operators are already under huge burden due to the AGR crisis and lockdown period. Due to multiple reasons, the ARPU of the telecom operators has taken a hit. Nearly all the major telcos like Bharti Airtel, Vodafone Idea, Reliance Jio, and others have been asking Trai to fix floor prices soon and drag them out from difficult situations.
Telecom operators have been facing constant financial pressure. The primary reason behind the financial distress is the AGR dues. Supreme Court of India directed all the telcos to clear AGR dues as per the estimates calculated by DoT. Apart from this, the outbreak of Covid-19 further disrupted the telecom industry. In order to fight with the coronavirus pandemic, the government has announced lockdown, which is hampering the daily life operations. Due to all these reasons, the average ARPU of Telecom operators is declining.
Trai Fix Floor Price ensure that ARPU gets back in the same position and the sector becomes sustainable, COAI is requesting Trai for Floor price soon and aid the telecom industry to invest in world-class networks and services.
As sector analysts, Trai Fix Floor Price will improve the ARPU of the telcos, which is decline for various reasons. This will also increase the revenues of telecom operators in the mobile sectors. COAI is also urging Trai to fix the floor price for an interim period of two or three years. Post that the regulator may review the tariff charges. Also, COAI expects that fixed floor prices will help the telcos to face healthy competition in the market without any trouble. However, Trai will fix the ultimate floor price.