COAI Reports Telcos’ Expenditure-Revenue Gap Crosses ₹10,000 Crore

The Cellular Operators Association of India (COAI) has highlighted a widening gap between telecom operators’ network expenditure and the revenue they earn from tariffs. According to COAI, the shortfall, which was around ₹10,000 crore until 2024, has started increasing further, reflecting the rising cost of network deployment across the country.

Speaking at the India Mobile Congress, COAI Director General SP Kochhar noted that although the government has introduced supportive policies such as the right of way (RoW), some authorities continue to charge high fees for laying network elements.

Impact on Tariffs and Data Plans

Kochhar explained that operators have had to adjust tariffs and entry-level data packs due to these increasing costs. Despite this, he added that competition among the four major telecom operators remains strong and there is no clear indication that consumers are switching en masse to lower-cost plans.

The association emphasised the need to balance infrastructure expenditure with revenue, suggesting that high network users should bear a larger share of the cost. “70 percent of the traffic on our networks comes from a handful of large traffic generators such as YouTube, Netflix, and Facebook, who currently pay nothing towards network development,” Kochhar said.

Call for Contribution from Large Traffic Generators

COAI has urged the government to explore ways for these large traffic generators to contribute to network expansion. The argument is that investments by Indian telecom operators are intended for the benefit of local consumers rather than providing cost-free service for international platforms.

Kochhar added that the rising costs include not only spectrum fees but also other levies that increase the financial burden on operators. He stressed that while policy frameworks like RoW have been helpful, inconsistent implementation across authorities continues to add to operational challenges.

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Focus on Sustainable Network Growth

The association’s comments underscore the challenges faced by the telecom sector in maintaining network quality while managing financial sustainability. The need for a fair cost-sharing mechanism between service providers and high-traffic platforms has emerged as a key discussion point for policymakers and industry stakeholders.

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