TRAI proposes new framework for telecom service authorisations

The Telecom Regulatory Authority of India (TRAI) has introduced a new framework for service authorisations under the Telecommunications Act, 2023. TRAI has proposed three main categories for service authorisations: Main Service, Auxiliary Service, and Captive Service Authorisations. The goal is to streamline the process for companies to provide a range of telecom services, such as mobile, broadband, satellite, and machine-to-machine (M2M) communications, under a single licence called Unified Service Authorisation (USA). This will allow companies to offer multiple services through one licence, reducing costs and increasing flexibility.

Lower Barriers for New Entrants

To support new companies entering the telecom market, TRAI has suggested lowering entry fees. For instance, access service fees have been reduced, and no entry fees will be required for certain authorisations, such as M2M WAN services. TRAI has also recommended merging financial and performance bank guarantees and using electronic bank guarantees (eBG) to further simplify the process for telecom providers.

Boost for Satellite and Internet Services

TRAI has updated the rules for satellite-based telecom services by merging VSAT and GMPCS under one authorisation. Restrictions on VSAT operators, previously limited to closed user groups, have been lifted to open new market opportunities. For internet service providers, the scope has been expanded to include leased lines and virtual private networks (VPNs), offering more revenue opportunities.

Key Recommendations

• Grant of Service Authorisation: The Central Government should issue Service Authorisations under Section 3(1) of the Telecommunications Act, 2023, instead of entering into agreements with entities.
• Unified Service Authorisation (USA): The introduction of a Unified Service Authorisation will enable "One Nation - One Authorisation," allowing entities to provide multiple services (such as mobile, internet, broadband, satellite, M2M, IoT) on a pan-India basis under a single authorisation.
• Broad Categories of Service Authorisations: TRAI has recommended three broad categories: Main Service Authorisations (e.g., Access Services, Internet, Long Distance, Satellite-based services, M2M WAN services), Auxiliary Service Authorisations (e.g., PMRTS, PM-WANI, M2M Service, Enterprise Communication), and Captive Service Authorisations (e.g., CMRTS, CNPN, Captive VSAT CUG).
• Network Service Operator (NSO) and Virtual Network Operator (VNO): Main service authorisations can be granted to NSOs and VNOs, with VNOs allowed multi-parenting with NSOs, except for wireless services, where they must partner with one NSO.
• Merger of Service Authorisations: Several authorisations have been merged to reduce redundancy, including M2M service provider registration and M2M WLAN/ WPAN connectivity provider registration into a single authorisation: M2M Service and M2M WLAN/ WPAN Connectivity Service Authorisation.

Satellite Communication Enhancements

TRAI has expanded the use of Non-Terrestrial Networks (NTN) in the scope of Access Services, and the restrictions on VSAT operators serving only closed user groups have been lifted. Internet Service Authorisation has also been expanded to include leased lines and VPNs to improve resource utilisation.

Ease of Doing Business

TRAI has recommended removing entry fees for renewals, merging financial and performance guarantees, and simplifying procedures with self-certificates and electronic bank guarantees, making it easier to do business in the telecom sector.

Ensuring Regulatory Stability

TRAI has recommended the government seek its input before making any major changes to service authorisation terms, except for matters of national security. This ensures stability and transparency in the telecom sector.

These recommendations aim to foster growth, promote competition, and support India’s goal of becoming a digital leader globally.