How fast an India’s mobile operators improve call drop performance? Maybe faster than you would suppose.
Though it might take some time to add many new cell towers, a remedy many would agree is necessary, the Cellular Operators Association of India (COAI) argues operators already have taken measures to improve performance in just two months time.
“TRAI’s observation that there is no improvement in the QoS/call drops after conducting the second drive test in September 2015, is not in consonance with the reports submitted to DoT by operators, which shows marked improvement in the operators’ networks over the past eight weeks,” says COAI.
The industry has added almost 70,000 additional cell towers in the last six months alone, COAI argues.
Still, dramatic improvements will take some time and capital, possible only if pressing right of way issues and building access issues can be resolved. In India, as elsewhere, as much as consumers might want better mobile phone signal coverage, almost nobody wants a cell tower where they can see it.
The arguments come in the wake of a decision by the Telecom Regulatory Authority of India (TRAI) requiring user compensation for call drops at the rate of Re. 1 per call drop, up to a maximum of three calls per day.
Just about everybody except local residents might agree that many more towers are required. That, in turn, requires site access and rights of way, in-building solutions, license terms and conditions.
Beyond that, mobile operators argue that defining what a “call drop” is, for purposes of providing compensation, is a bit subjective. Consumers have different definitions than engineers have. Nor is it always clear where a call drop has been caused, and therefore where the penalty has to be assessed (it might be the originating carrier, it might be the terminating carrier).
The rules apparently require resolution within four hours, for each instance, including notification to the customer, with details of compensation.
That “is not realistic,” COAI argues.
“Compensation to the consumers for call drops is not the correct approach and will not resolve the underlying problems which are in the main, beyond the immediate control of the operators,” said Rajan Mathews,COAI director general. “Until and unless adequate infrastructure is allowed to develop, the issue cannot be resolved.”
There are potentially significant revenue implications.
The average revenue per user in India is not more than Rs 125. So compensation for three dropped calls a day equals Rs 90 in payments, potentially reducing revenue 72 percent.
Perhaps more realistically, earnings before interest, tax, depreciation and amortization (EBITDA) could shrink by seven percent to eight percent. That might be all or most of the actual profit margin for some providers.
According to COAI, the right approach to the issue would be to address the lack of cell-sites, which in turn, would help boost the network capacities and improve the quality of the services.
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