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Business Economy


Revision of implementation date of zero-IUC regime would harm consumer interest: Thinktank

New Delhi, Oct 22 (UNI) Broadband India Forum (BIF), a think tank for Digital Transformation, said on Tuesday that there is absolutely no need to revise the applicable date for Bill and Keep (BAK) or zero termination charge and that it should be firmly held, as earlier scheduled by the Telecom Regulatory Authority of India, to be effective from January 1, 2020.
In fact, any revision to this date would be a retrograde step and seriously harm the interests of the consumers and the nation in several ways, it said in a statement here.

''Regulatory certainty and predictability constitute the single most important factor sought by all investors and players in the eco-system while making investments. Whether it is for Digital India, Smart Cities, Make in India, spectrum auction, 5G, or any other ‘G’, the foremost demand is always to seek consistency/certainty/predictability with regard to the regulatory environment and contract/license conditions,'' it said.
In the Explanatory Memorandum to Eleventh Amendment to the Regulations, TRAI had clearly stated that setting a specific timeline for undertaking interconnect usage charge (IUC) review would impart a modicum of certainty which is in the interest of all stakeholders.
The Authority had decided that the applicable date for implementation of Zero IUC Rates or BAK Regime would be January 1, 2020 vide Telecommunication Interconnection Usage Charges (Thirteenth Amendment) Regulations, 2017.
To renege on that decision now, will create a sense of regulatory uncertainty and shall adversely impact India’s image as regards future investment potential in the sector, the thinktank maintained.

Further, a stable regulatory framework drives deployment of more efficient technologies with the benefit of lowering the cost of delivery to enable innovative and customer friendly offerings. Therefore, continuing to incentivize/subsidize operators in the form of IUC for managing the significantly less efficient 2G voice networks will not only be detrimental to consumers, but also adversely impact the growth of all digital players, startups, OTTs, Application developers, etc. who need high speed 4G broadband connectivity to survive and grow - an aspect important for the economy and the nation, it pointed out.

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