TRAI's Recommendations for a Streamlined Licensing Framework
The Telecom Regulatory Authority of India (TRAI) has unveiled a set of recommendations aimed at refining the licensing framework under the newly proposed Telecom Act. Central to these recommendations is the “One Nation One Authorisation” approach, which seeks to simplify the regulatory landscape for telecommunications services across the country.
Notably, the proposal does not extend its focus to over-the-top (OTT) services, which has been a contentious point in the ongoing discourse surrounding telecommunications regulation. While satellite services and infrastructure sharing are encouraged, the absence of OTT regulations has left many industry stakeholders pondering the implications.
Telecommunications companies, including major players like Jio, Airtel, and Vodafone, have long advocated for a “same service, same rules” framework. They argue that OTT platforms, which utilize telecom infrastructure, should be subject to similar regulations as traditional telecom services. This sentiment has gained traction, particularly in light of recent discussions surrounding the regulation of popular communication apps such as WhatsApp, Telegram, and Google Meet.
In July, TRAI released a Consultation Paper outlining the framework for service authorisations under the Telecom Act, and an open house discussion on August 21 further explored the regulation of OTT communication services. Industry groups such as the Broadband India Forum (BIF), the National Association of Software and Services Companies (NASSCOM), and the Internet and Mobile Association of India (IAMAI) have countered that OTT services are already governed by the Information Technology Act of 2000. Last year, former telecom Minister Ashwini Vaishnaw reiterated this stance, clarifying that OTT applications fall under the purview of the IT Act rather than the Telecom Act.
Despite these clarifications, telecommunications companies continue to push for a regulatory framework that would level the playing field, advocating for OTT services to be subjected to a similar licensing regime and taxation as their own operations.
On September 18, TRAI’s recommendations on the
TRAI has also proposed a significant reduction in entry fees and the categorization of services into three broad segments:
- Main service authorisations
- Auxiliary service authorisations
- Captive service authorisations
The authority has called for the central government to issue service authorisations based on predefined criteria, moving away from entity-specific agreements.
