Gopal Vittal, the Chief Executive of Bharti Airtel, has strongly endorsed the government’s decision to allocate spectrum for satellite broadband and backhaul spectrum for connecting cell sites. Vittal states this move is deemed “game-changing” and aligns with global standards. As the Lok Sabha passed the Telecommunications Bill 2023, Vittal shared insights on various aspects of the telecom industry and its prospects.
Highlights
1) Satellite Broadband’s Role in Rural Connectivity
Vittal highlighted the significance of satellite broadband in providing coverage to remote areas, complementing terrestrial networks. This technology is expected to enhance connectivity in the remotest regions where traditional networks might be challenging to deploy.
2) OneWeb’s Partnership with Bharti Airtel
Bharti Airtel is set to distribute OneWeb’s satellite broadband services in India, with the launch expected next year. This collaboration is part of Bharti Enterprises’ stake in OneWeb, which has recently merged with Eutelsat Communications.
3) Telecom Bill 2023 Reforms
Vittal discussed the positive impact of reforms in the licensing framework, spectrum harmonization, and the rationalization of penalties outlined in the new telecom bill. These changes are expected to pave the way for better quality of service, considering telecom as an essential service.
4) Emergency Takeover of Telecom Networks
Addressing concerns about provisions allowing the government to take over telecom networks in emergencies, Vittal emphasized that such measures are not controversial and exist in many parts of the world. He clarified that it is part of their current license agreement.
5) Regulation of Internet-Based Services
Concerns were raised about the bill’s lack of explicit distinctions between traditional telecom and internet-based services, potentially leaving room for regulating internet-based services. Vittal clarified that no segregation of Airtel’s services is required, as they already comply with respective licenses.
6) Level Playing Field and Regulatory Arbitrage
Vittal advocated for a level playing field between telecom operators, direct-to-home (DTH) players, and over-the-top (OTT) service providers. He emphasized the need for the same rules to apply to similar services to avoid regulatory arbitrage.
7) Fair Revenue Share from OTT Players
Expressing concerns about regulatory arbitrage, Vittal urged OTT players, huge ones, to contribute a fair share of revenues to telecom players. He argued it would help maintain affordable tariffs in India.
8) Necessity of Tariff Adjustments
Vittal suggested increasing telecom service tariffs to ensure a reasonable return on capital employed for telecom companies. It would aid in recouping network investments, primarily for data consumption.
Summary
Gopal Vittal’s insights shed light on the evolving landscape of the Indian telecom industry, focusing on technological advancements, regulatory reforms, and the need for a balanced playing field among service providers. As the industry embraces satellite broadband and navigates through regulatory changes, Bharti Airtel positions itself to play a pivotal role in shaping the future of telecommunications in India.
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