Trai seeks views on telecom service framework
The consultation follows a request from the department of telecommunications (DoT) for Trai’s recommendations on terms and conditions, including fees or charges, for authorisation to provide telecommunication services under the new Act.
New Delhi: The Telecom Regulatory Authority of India (Trai) has released a consultation paper seeking comments on how to frame terms and conditions for telecommunication services under the new Telecommunications Act, 2023, posing 61 questions for feedback on how the future of telecom service authorisations in India could work.
Among these are whether the government should continue with the existing licensing regime as the form of authorisation, or a new form of “leaner” authorisations should be allowed for applicants, and if there should exists a single authorisation for satellite-based telecommunication services. The Trai has also sought stakeholders’ opinion on what should be the costs of applying for an authorisation if there is a unified service authorisation for all of India. The regulator is accepting comments until August 1 and counter comments until August 8.
The consultation follows a request from the department of telecommunications (DoT) for Trai’s recommendations on terms and conditions, including fees or charges, for authorisation to provide telecommunication services under the new Act.
A crucial question raised is whether the central government should issue authorisations to applicant entities, as is the practice in multiple countries, or continue the current practice of entering into licence agreements that prescribe terms, conditions and eligibility criteria.
Trai also asked if detailed terms and conditions could be prescribed in rules, while specifics such as service area and validity period could be included in the authorisation itself. The regulator sought opinions on introducing a unified service authorisation at the national level for end-to-end telecom services, while noting that smaller players might still prefer offering fewer services in limited geographical areas.
Regarding satellite-based telecommunication services, TRAI asked whether the existing Global Mobile Personal Communications by Satellite (GMPCS) and Very Small Aperture Terminal—Closed User Group (VSAT CUG) authorisations should be merged for operational efficiency.
The consultation paper also addressed the ownership of infrastructure, questioning how new authorisations can be introduced given technological advancements like network virtualisation and equipment sharing. On financial matters, Trai sought stakeholder opinions on application fees, entry fees, bank guarantees and authorisation fees for a unified service authorisation covering all of India. It also asked for input on defining gross revenue, applicable revenue and adjusted gross revenue.
Sumeysh Srivastava, senior manager of public policy at The Quantum Hub, a private consulting firm, noted, “The paper does not speak of regulating OTT communication services. This is further supported by the paper’s omission of the ongoing consultation on OTT regulation when referencing consultations impacting the authorisation framework.” However, Srivastava expressed concern about potential regulation of content delivery networks (CDNs) and internet exchanges, stating, “Excessive regulatory obligations on these entities could hinder India’s digital growth.”
TRAI has also requested suggestions on terms and conditions for security interests that the government can prescribe, as well as the format for statements of revenue share and licence fees for each authorisation.
The consultation paper noted that current licence agreements for unified licences can run to about 200 pages, partly due to frequent amendments. TRAI observed that authorisations or licences issued in other countries are typically “lean documents with only the essential elements written in them”.
Under the existing unified licence regime, licensees pay a one-time, non-refundable application processing fee and an entry fee to obtain service authorisation. In September 2023, TRAI recommended revising the entry fee for all services to the sum of individual authorisation fees, while suggesting its removal for certain services like audio conferencing and machine-to-machine communication.
Licensees also pay an annual licence fee as a percentage of Adjusted Gross Revenue, currently set at 8% across authorisations, including a 5% Universal Service Obligation Levy.
TRAI previously recommended merging financial and performance bank guarantees into a single guarantee of 44 crore rupees for the initial year across all services.