Trai Overhauls Telecom Licensing with Unified Service Authorisation

The Telecom Regulatory Authority of India (Trai) has proposed a new framework for telecom service licensing, introducing three main categories: main, auxiliary, and captive service authorisations. The new framework aims to simplify licensing by introducing 'Unified Service Authorisation,' achieving 'One Nation - One Authorisation.' The overhaul also merges various services and significantly reduces entry fees.

The Telecom Regulatory Authority of India (Trai) has set the stage for a comprehensive overhaul of the existing telecom service licensing regime by recommending three broad categories of telecommunication service authorisations. These include main service authorisations, auxiliary service authorisations, and captive service authorisations. Notably, over-the-top (OTT) services are not explicitly mentioned under the new framework.

The newly introduced 'Unified Service Authorisation' aims to achieve the objective of 'One Nation - One Authorisation' across different services and service areas. According to Trai, the government should grant service authorisations under the new Telecommunications Act, 2023, rather than entering into agreements with entities. The new framework also merges the commercial VSAT-CUG service and GMPCS into a single 'satellite-based telecommunication service authorisation.'

Trai's recommendations include eliminating the extant restriction on VSAT operators from providing services to only closed user groups, thus broadening the scope of satellite-based telecommunication services. This new framework is expected to boost competition, attract fresh investments, and open doors for new service providers by significantly reducing the entry fees for different service authorisations.

(With inputs from agencies.)