The Telecom Regulatory Authority of India (TRAI) has put forward significant recommendations for revamping the existing telecom service licensing regime, marking a transformative shift in the sector. In a detailed framework unveiled yesterday, TRAI outlined three main categories of service authorisations: main service authorisations, auxiliary service authorisations, and captive service authorisations. Notably, over-the-top (OTT) services have not been explicitly included in this new framework.
A key feature of the proposed regime is the introduction of Unified Service Authorisation, aimed at achieving the objective of “One Nation – One Authorisation” across services and regions. This recommendation aligns with TRAI’s broader vision under the newly formulated Telecommunications Act, 2023, which emphasizes that service authorisations should be granted directly under this Act, as opposed to agreements with entities.
The new framework has merged commercial VSAT-CUG services with Global Mobile Personal Communication by Satellite (GMPCS) services, creating a consolidated Satellite-based Telecommunication Service Authorisation. The previous restriction limiting VSAT operators to Closed User Group (CUG) services has been lifted, opening the sector to more flexible satellite-based services.
TRAI also clarified the distinctions between the three categories of authorisations:
- Main service authorisations include primary telecom services such as access, internet, long-distance, satellite-based telecommunications, and M2M WAN services.
- Auxiliary service authorisations cover enterprise-focused services, such as PMRTS, PM-WANI, M2M services, and various connectivity solutions with minimal regulatory oversight.
- Captive service authorisations cater to specific internal communication needs of entities.
A crucial aspect of this revamp is the significant reduction in entry fees across different authorisations, aimed at encouraging new entrants, driving investment, and increasing competition in the telecom sector.
In a related note, TRAI’s Chairman Anil Lahoti commended several key officers for their dedicated efforts in developing these recommendations, highlighting the agency’s commitment to modernising India’s telecom infrastructure.
Summary:
- TRAI proposes a revamped telecom licensing regime under the Telecommunications Act, 2023, categorizing services into three broad authorisations.
- The new framework excludes OTT services but merges VSAT-CUG and GMPCS into a unified satellite-based authorisation.
- Entry fees for service authorisations are significantly reduced, encouraging market competition and new investments.