COAI issues support for 2G and 3G revenue split

14 Oct 2008

Telecom Tiger is reporting that the Cellular Operators Association of India (COAI) has thrown its support behind proposals by the Department of Telecommunication (DoT) to separate 2G and 3G services for licence fee renewal purposes. The backing follows the announcement that the government is to set up a committee to examine the matter, with Communications and IT Minister Andimuthu Raja stating, ‘The sub-committee formed by the department (for 2G and 3G revenue segregation) will come up with its report very soon.’ In order to make its case, the COAI has highlighted worldwide cases where revenue splits have been practised, citing the UK and Hong Kong as two such examples. The director-general of the COAI, T.V. Ramachadran, has suggested that the revenue break-up could be achieved through two methods; a traffic-based approach or a call data record approach. The industry body also claims that, should the revenue split be implemented, a more competitive environment would be fostered, with operators more likely to extend their 3G footprint.