Streamline audits by multiple agencies for ease of biz: COAI

Cellular operators' body COAI today hoped that Trai's review of bottlenecks in the telecom sector will help iron out the outstanding issue of computation of gross revenue and streamline multiple audits that companies face.
"Multiple agencies conduct audits...Trai of billing systems and tariffs, the Telecom Department conducts audit on Adjusted Gross Revenue (AGR) and eKYC...Then there are CAG audits for AGR. Sebi audits for compliance on audited financial statements.
"The audit process by multiple agencies in areas like revenue, billing accuracy and customer acquisition costs can be streamlined," COAI Director General Rajan Mathews told PTI.
He suggested that a single agency can be selected for conducting audits on behalf of all other agencies, as this will simplify the entire process.

Mathews' comments come in the backdrop of Trai initiating the process of identifying bottlenecks that impede telecom business in India. Trai has said it will look at simplifying procedures on licence acquisition, spectrum allotment and mergers.
"The issue of adjusted gross revenue (used for calculation of revenue share) has been subject to many orders...The matter pertaining to classification of items that will go into computation of AGR also needs to be looked into, such that a clear definition can emerge," Mathews said.

He said that the entire audit and verification process relating to AGR can also be automated.
Other processes that need to be simplified include filing for SACFA clearances for spectrum allotment, he said.

Earlier today, the telecom regulator said it is important to identify the "bottlenecks, obstacles or hindrances" that are making it difficult to do telecom business in India and thus, require "regulatory intervention".
Trai, as part of 'ease of doing telecom business', will review procedures related to acquisition of unified licence, compliance with commercial, financial, technical conditions, and compliance with rollout obligations, payment of licence fee, financial bank guarantee and performance bank guarantee, and adding and surrendering authorisations under the licence.
Other issues outlined by Trai for review include spectrum allotment and use, assignment and clearance process for the airwaves, approval process for spectrum trading and sharing.

As part of the process overhaul, Trai would also look at the merger and acquisition policy.