Addressing Telecom Revenue Gaps Amid Rising Data Traffic: C-DEP.org's Groundbreaking Report

The Centre for Digital Economy Policy Research has released a report analyzing the discrepancy between telecom infrastructure investments by TSPs and the revenue generated amid surging data consumption. It proposes a Fair Share Framework where Large Traffic Generators contribute to infrastructure costs, ensuring network sustainability while protecting smaller businesses.

New Delhi, August 29th, 2024: The Centre for Digital Economy Policy Research (C-DEP.org) has unveiled a new report titled 'Analysis of Telecom Revenue Frameworks Amid Increasing Data Traffic'. This extensive study scrutinizes the revenue frameworks in place to tackle the issue of disproportionate investments by Telecom Service Providers (TSPs) in telecom infrastructure, juxtaposed with insufficient revenue growth.

In the past decade, India's average monthly data consumption per user has surged 288 times, facilitated by affordable smartphones, and the expansion of 4G and 5G networks. Concurrently, the Average Revenue Per User (ARPU) has grown by a mere 1.25 times. This stark disparity has placed TSPs at a substantial disadvantage, straining their ability to sustain and expand critical network infrastructures.

The report highlights that Large Traffic Generators (LTGs), including video streaming and social media platforms, are major contributors to escalating data traffic. However, these entities are not currently sharing the infrastructure costs. Dr. Jaijit Bhattacharya, President of C-DEP.org, emphasized that adopting a Fair Share Framework would ensure LTGs contribute appropriately, maintaining cost-effective and equitable access to the internet for all consumers.

(With inputs from agencies.)