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Mumbai metro trying to extract monopolistic rents for mobile network: COAI
COAI on Sunday accused Mumbai Metro of trying to extract monopolistic and extortionate rents on provision of mobile network, as the industry body argued that under stipulated rules, a public authority cannot deny providing Right of Way to telecom operators in a public place.
COAI, in a statement, said that in order to minimise disruptions, telecom service providers had offered a common network for facilitating mobile connectivity which has been ignored by the Mumbai Metro.
"Telecom Service Providers are always willing to provide connectivity through IBS (in-building solutions). However, in the instant case, Mumbai Metro has created a monopoly on providing connectivity exclusively through a third party vendor, and is now trying to extract monopolistic and extortionate rents for providing the mobile network," COAI said.
As per the new Telecommunication Act and Right of Way (RoW) rules, a public authority cannot deny providing Right of Way to TSPs in a public place "which is exactly what is being done by the Mumbai Metro", COAI Director General S P Kochhar said.
"One must note that deploying of such network(s) are a norm, even in important places like the PWD tunnel in Pragati Maidan or the Central Vista, wherein the TSPs are laying infrastructure without paying any cost to anyone (including any third party)," according to COAI.
COAI claimed that Mumbai Metro was quoting precedence for appointing a third party vendor and denying RoW to telcos.
"It may be noted that wrong precedence does not make a legitimate one and the industry is separately addressing the issue of such monopolies being created, with a view to stop such extortionate practices," said the association - whose members include Reliance Jio, Bharti Airtel and Vodafone Idea.
Telecom service providers are always willing to incur capex for setting up network inside the Metro, despite no any additional incremental revenue.
"However, paying extortionate rates to Mumbai Metro for such a network is not viable," COAI said.
Further, COAI pointed out that services were being offered on a trial basis by all TSPs, pending finalisation of a formal agreement.
"...to support uninterrupted connectivity for Mumbai Metro commuters, TSPs had proposed providing mobile connectivity Free of Cost without any payment to either the third party vendor or Mumbai Metro, until commercial terms could be mutually agreed upon. This was communicated through a joint letter by TSPs dated 7th April 2025," COAI said, adding, "reasonable and consumer first proposal was ignored by the Mumbai Metro".
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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