“We will have to frame the licence, invite applications for people to apply. They will have to tie their back-end tieups with carriers and satellite providers. We will try to expedite it fastest because everyone wants it,” she said. “Exciting times ahead in Indian skies as Telecom Commission approved data and voice services in flights over Indian airspace,” civil aviation minister Suresh Prabhu said. He said he would ensure “earliest implementation.”
Globally, some 30 airlines offer on-board calling and data services but not while in Indian airspace. The new services will come at a far higher cost than on-ground rates, analysts said. Sundararajan said market forces will determine the prices for consumers.
A per-minute call can range from Rs 125 to Rs 150 for domestic flights since airlines will have to invest millions of dollars to provide the services, depending on commercial factors, said Kapil Kaul, chief executive officer of Indian subcontinent & Middle East regions at aviation consultancy firm CAPA India. However, the services will allow local airlines to compete with international rivals and will provide an additional revenue stream in an intensely competitive market, experts said.
Lufthansa, Jet Airways and Vistara said they would explore the possibility of introducing the services on their flights. “After this approval, there is a possibility of providing passengers with the services within the Indian airspace, too. We shall definitely look at it,” said Wolfgang Will, senior director at the German premium airline.
PRICING
Telcos and analysts said prices can’t be predicted. “Considering the additional capex and arrangements that telcos and airlines will have to get into, the prices are unlikely to be the same as on-ground rates. Pricing will depend on the market situation since airlines will want to generate revenue from this service,” said Hemant Joshi, leader of technology, media and telecom at Deloitte India. Kaul said he didn’t see viability for domestic operations at this time. “One-time cost for domestic narrow-body fleet will be closer to $200 million. I do see both voice and data being offered on long-haul flights out of India,” he said. Bharti Airtel has already created Seamless Alliance along with OneWeb, Airbus, Delta and Sprint to create a platform to attract additional industry operators with the aim of providing users high-speed, low latency connectivity through satellite technology.
Emirates Airlines offers the first 20 MB free, followed by $9.99 (.`666) for up to 150 MB and $15.99 (Rs 1,066) up to 500 MB for those who are not members of its frequent flyer programme. Its business class and first-class customers get unlimited free Internet.
OMBUDSMAN
The commission also cleared setting up of a telecom ombudsman under Trai by giving the regulator more powers including that of penalising erring telcos and awarding compensation to consumers by amending the Trai Act. Each telco will set up an appellate tribunal to consider grievances and unsatisfied consumers can approach the ombudsman. The decision “will bring in much more satisfactory telecom grievance redressal system into the telecom sector… Amendment of the Act will go to Parliament in the upcoming session. We will work with Trai and do this on priority,” said the telecom secretary.
She added the telecom department received 10 million consumer complaints every quarter. Carriers, however, protested the grant of penal powers to Trai. “Trai can’t be judge, jury and hangman. It can’t put in place a regulation, adjudicate on it and set penal provisions… that is what caused TDSAT to come into existence. The regulation and judicial distinctions need to be preserved,” said Rajan Mathews, director-general of the Cellular Operators Association of India, which represents all operators. He added that the current mechanisms for addressing consumer grievances were adequate.
The government also approved a recommendation to encourage telcos to offer WiFi-based calling services to compete with WhatsApp and Skype.