Trai Proposes Overhaul of Telecom Licensing with Three New Authorisation Categories

The Telecom Regulatory Authority of India (Trai) has proposed a new framework for telecom service authorisations, introducing three main categories: main, auxiliary, and captive service authorisations. This overhaul aims to streamline the licensing regime but notably excludes over-the-top (OTT) services. The recommendations were released under the Telecommunications Act, 2023.

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Under this framework, the Unified Service Authorisation seeks to implement the "One Nation - One Authorisation" policy across various services and regions. This allows entities to offer mobile, internet, broadband, landline, long-distance, satellite communication, and Machine to Machine (M2M) services nationwide under a single authorisation.

Unified Service Authorisation and Its Scope

The Unified Service Authorisation provides flexibility for routing domestic traffic. It combines National Long Distance (NLD) and International Long Distance (ILD) services into one Long Distance Service Authorisation. This also includes establishing ILD Gateways and cable landing stations for both domestic and international submarine cables.

Satellite-based telecommunication services have been restructured by merging Commercial VSAT-CUG service and GMPCS into a single authorisation. This change removes the restriction on VSAT operators to serve only closed user groups (CUG), broadening their service scope.

Main, Auxiliary, and Captive Service Authorisations

Main service authorisations encompass primary telecom services like access, internet, long-distance, satellite-based telecommunication, and M2M WAN services. These can be granted as Network Service Operator (NSO) or Virtual Network Operator (VNO) sub-categories. Auxiliary service authorisations cover existing services provided mainly to enterprises with minimal regulatory oversight.

Captive service authorisations are meant for establishing private networks after spectrum assignment from the central government. Examples include CMRTS, CNPN, and Captive VSAT CUG. Each type of service authorisation will have specific terms governed by rules under the Telecommunications Act.

Impact on Telecom Market

The entry fees for various service authorisations have been significantly reduced. This reduction is expected to attract new providers, encourage investment, and enhance competition in the telecom sector. Trai's recommendations aim to simplify processes while fostering growth within the industry.

The proposed framework does not cover OTT services but focuses on integrating satellite-based services into a unified category. The goal is to create concise documentation with clearly defined terms and conditions for each authorisation type.

This comprehensive approach by Trai is designed to modernise India's telecom licensing system. By consolidating multiple services under unified categories, it aims to facilitate easier access and operation for telecom entities across the nation.