COAI seeks subsidy from government for continuing benefits for all prepaid users

Telecom companies have extended benefits of continuation of services for over 280-300 million prepaid users, which accounts for more than Rs 600 crore. COAI also urged that these benefits should not be misused or expected to continue further.

"The individual actions taken by the member operators were for serving the national interest in the given situation so that the underprivileged were not deprived of any communication facility in this time of need. Therefore, the expectation that the benefit will be extended further, including to all the prepaid customers, who have the means to recharge, is not appropriate" said the COAI letter.

The letter also highlighted the financial stress in the telecom sector and sought subsidy if the government and regulator feel the need for extending the benefit of services for the prepaid subscribers.

"If the Authority and the Government feels there is a need to provide further benefit, including providing benefit to all the prepaid feature phone subscribers, then this should be provided in the form of a subsidy to the telecom sector like many other essential services. This could be adequately compensated from the USO Fund were more than Rs.51,500 crore is lying unutilised as on 31.03.2020” the letter mentioned.