COAI Advocates Limited Network Fee for Large Traffic Generators to Sustain Telecom Operations

The Cellular Operators Association of India (COAI), representing telecom operators, has proposed a streamlined approach to network fees, recommending that only a select few “large traffic generators” (LTG) bear the responsibility of compensating telecom companies. COAI’s stance emphasizes that these LTGs should pay fees based on the “disproportionate (network) traffic” they generate.

The concept of a network fee, also referred to as a fair share, was initially introduced during a Telecom Regulatory Authority of India (TRAI) consultation, initiated by telecom companies. In this consultation, telecom operators sought compensation from internet companies for the traffic, turnover, and user base they contribute.

While the proposal aimed at a fair distribution of costs, concerns arose about potential implications on net neutrality. Critics argued that imposing such fees could elevate operational expenses for internet companies, potentially leading to the exclusion of smaller players from the market.