Telecom industry has rejected Trai's call to provide talktime credit and extended validity to all pre-paid mobile phone users, saying telecos had offered benefits worth over Rs 600 crore to low-income subscribers to stay connected during the lockdown, and extending it to all pre-paid customers was unjustified.
The response from COAI, whose members include Bharti Airtel, Reliance Jio and Vodafone Idea, comes just days after Trai pulled up telcos on selective approach in extending validity and giving talktime credit.
The sector regulator had insisted that uninterrupted services need to be ensured for all prepaid subscribers amid the ongiong lockdown.
Putting up a strong defense, the industry has said that adequate measures have already been taken to ensure that those who genuinely require support due to unavailability of options to recharge are provided help to tide over the situation. This was done by the industry despite the current financial stress.
COAI said that in case Trai and the government still feel the need for extension of benefits to all prepaid feature phone subscribers, this should be provided in the form of a subsidy to the telecom sector like many other essential services.
"This could be adequately compensated from the USO Fund where more than Rs 51,500 crore is being lying unutilised as on March 31, 2020," COAI said in a letter to Telecom Regulatory Authority of India (Trai) on Thursday.
The industry association said despite the financial stress being faced by the sector, requisite measures have been taken by telecom operators to support low-income users who are at the bottom of the pyramid and are not in a position to recharge their prepaid services.
Operators have offered extended validity for continuation services and talktime benefits to ensure that essential calls can be made by those who genuinely need help to stay connected.
The expectation of extending benefits to all prepaid users, even those who have the means to recharge, is not appropriate, it said.
"It is respectfully submitted that this is individual operator's decision depending on its assessment," COAI said.
Providing benefits indiscriminately even to privileged customers would amount to "unjustified subsidy" to a larger section "at a steep loss to industry", the body said arguing that doing so would also dissuade other customers - those dutifully using various digital and non-digital means - from recharging.
COAI pegged the value of benefits announced by telcos for low-income users, to be over Rs 600 crore, even on conservative basis.
"Despite the fact that the sector is going through a very challenging phase, the telecom service providers are ensuring that the nation remains connected and functions while we continue our fight against the novel COVID-19 outbreak," it added.
COAI said its members operators are of the view that there are adequate recharge options available and avenues have been increased in past few days for subscribers to do recharges from homes.
Alternate channels like bank ATMs, pharmacies as well as a wide network of grocery stores have also been activated.
These measure have ensured that about 80-90 per cent of the subscriber base is able to recharge.
Customers who actually required support from the telecom service providers for continuation of their services in the initial period of lockdown were estimated to be in the range of 80-100 million, while operators have collectively extended the benefits for continuation of services to around 280-300 million subscribers, it said.
"We are therefore taken aback to see the letter issued by the authority to our members," it said.
The industry has urged Trai to keep in mind "dire financial situation" of operators and added that business viability of telcos needs a balanced consideration too.
"At present, the sector finds itself in a very unstable situation reeling under huge debts and the current scenario of the sector is under a question due to business viability," COAI said, adding that the financial stress faced by industry has been acknowledged by all and Trai has also issued a consultation paper on floor prices.
"...we cannot believe it is the intention of Trai that such benefits should be indiscriminately provided to even those privileged ones who are well able to afford such services and need no incentives or provisions to avail of continued mobile services," the association contended.
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