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Operators should separately disclose revenues obtained from each business stream: TRAI

January 17, 2012
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The Telecom Regulatory Authority of India (TRAI) has suggested that operators should disclose revenues from each stream of business separately, say news reports.

Currently, operators report revenues from broad service categories, such as mobile services, fixed line services, long distance telephony, etc. TRAI has now requested for reports on income from services such as 3G, tower business, Internet Protocol TV and multimedia messaging.

TRAI has said that this decision has been taken keeping in mind the changes in technology and user behaviour.

While issuing the draft reporting system on accounting separation regulations 2012, TRAI stated, “Some services have virtually disappeared from the market while new services have emerged. Regulatory focus has also been drawn in recent times to sub-services within services, data and value-added services, necessitating the collection of more detailed information.” Operators have been given time until January 31, 2012, to send in their comments.

Under the proposed regulations, operators will have to submit accounts every year. The new regulation will, however, be applicable only to those companies which have consolidated revenue of over Rs 1 billion.

“A number of regulatory and policy changes have also influenced the sector. Dual technology, unified access licenses have been issued. Allocation of 2G spectrum to new players and auction of 3G spectrum have impacted business models and revenue streams of service providers,” TRAI said while justifying the move to change revenue reporting norms.

The new regulations also allow operators to submit the required data online. “To obtain and use data in a timely fashion, a need has been felt for its online submission and processing thereby also reducing regulatory cost,” it said.


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