Telecom firms oppose TRAI suggestions on adjusted gross revenue
Private telecom operators opposed TRAI's recommendation to include sale and rent of building, leasing of infrastructure, vendor's credit and other incomes in their Adjusted Gross Revenue.
By PTI |
NEW DELHI: Private telecom operators on Monday opposed regulator TRAI's recommendation to include sale and rent of building, leasing of infrastructure, vendor's credit and other income such as earning from consultancy and training fee in their Adjusted Gross Revenue.
During the hearing in Telecom Disputes Settlement and Appellate Tribunal, the Association of Unified Telecom Service Providers of India (AUSPI) protested TRAI's suggestion on including such income and said it would reduce the competitiveness of the sector.
Protesting the inclusion of sale and rent of building, AUPSI contended that their core business is to run telecom operations and not to sell or rent any premises.
"This income is arising out of third party and not from our customers and is not a part of telecom earning. It has nothing to do with the telecom license," the AUSPI counsel said.
AUSPI argued that such income was not even recognised from the Indian accounting standards and is realised by Telecom Regulatory Authority of Indian and Department of Telecommunication. It also opposed regulator's suggestion to add income earned from mobile tower leasing.
"Our business is not to buy or sell building and telecom equipments. We are service providers not a real estate developer like DLF," he further contended.
TRAI's recommendations came on direction of TDSAT, which had in July 2006 allowed an appeal of AUSPI and said that revenues arising only from telecom services should be included for levying license fee.
During the hearing in Telecom Disputes Settlement and Appellate Tribunal, the Association of Unified Telecom Service Providers of India (AUSPI) protested TRAI's suggestion on including such income and said it would reduce the competitiveness of the sector.
Protesting the inclusion of sale and rent of building, AUPSI contended that their core business is to run telecom operations and not to sell or rent any premises.
"This income is arising out of third party and not from our customers and is not a part of telecom earning. It has nothing to do with the telecom license," the AUSPI counsel said.
AUSPI argued that such income was not even recognised from the Indian accounting standards and is realised by Telecom Regulatory Authority of Indian and Department of Telecommunication. It also opposed regulator's suggestion to add income earned from mobile tower leasing.
"Our business is not to buy or sell building and telecom equipments. We are service providers not a real estate developer like DLF," he further contended.
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TRAI's recommendations came on direction of TDSAT, which had in July 2006 allowed an appeal of AUSPI and said that revenues arising only from telecom services should be included for levying license fee.
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