The Telecom Regulatory Authority of India (TRAI) has unveiled a comprehensive overhaul of the telecom licensing framework, as detailed in its recommendations released on Wednesday. Notably, the authority has opted to exclude over-the-top (OTT) communication services such as WhatsApp, Facebook Messenger, and Telegram from its latest licensing considerations. This decision aims to streamline processes, foster competition, and enhance the overall ease of doing business within the telecom sector.
Key Changes in Licensing Structure
The new framework addresses ongoing tensions between the tech and startup sectors and telecom operators regarding the potential licensing of OTT services, which could have imposed additional taxation on these platforms. In a move that particularly favors smaller and medium-sized enterprises, TRAI has significantly reduced entry fees for telecom licenses. Specifically, the entry fee for Access Service Authorisation has been halved from ₹1 crore to ₹50 lakh in each telecom circle or metro area. For regions such as Jammu & Kashmir and the North East, the fee has been further reduced from ₹50 lakh to ₹25 lakh.
TRAI has delineated three primary categories of authorisations:
- Main Service Authorisations
- Auxiliary Service Authorisations
- Captive Service Authorisations
These categories are designed to encompass the full spectrum of telecom services available across India, aligning with the newly established Telecom Act of 2023.
Unified Service Authorisation
In a significant advancement, TRAI has introduced a ‘Unified Service Authorisation’ aimed at achieving the vision of ‘One Nation – One Authorisation.’ This new authorisation allows entities to provide a diverse array of services, including mobile, internet, broadband, landline, long-distance, satellite communications, Machine to Machine (M2M), and Internet of Things (IoT) services throughout the country. This framework grants operators the flexibility to route domestic traffic as needed.
Furthermore, TRAI has merged National Long Distance (NLD) and International Long Distance (ILD) services into a single authorisation known as ‘Long Distance Service Authorisation.’ This authorisation not only facilitates the establishment of ILD Gateways but also allows for Cable Landing Stations for both domestic and international submarine cables. Notably, it permits the transportation of domestic traffic via submarine cables connecting two coastal cities in India.
Satellite Telecommunications and Future Pathways
In addition to these changes, TRAI has proposed a new ‘Satellite-based Telecommunication Service Authorisation’ aimed at commercial satellite services, which consolidates previous VSAT-CUG and GMPCS licenses. This new framework allows satellite telecom providers to utilize satellite earth station gateways within India to serve international markets, contingent upon government approval.
To further support these initiatives, TRAI has recommended that the central government establish a clear pathway for financial accounting, resource numbering assignment, and spectrum allocation at the national level for entities authorized under the Unified Service framework. This structured approach is expected to enhance operational clarity and efficiency in the evolving telecom landscape.