Telecom licensing overhaul coming, DoT clears Trai recommendations on new authorisation

Telecom

The department of telecommunications (DoT) has accepted most of the Telecom Regulatory Authority of India (Trai) recommendations on a service authorisation framework that will replace the existing licensing system, sources said.

The development marks a significant step towards implementing the new regime under the recently enacted Telecommunications Act.

The Digital Communications Commission (DCC), an inter-ministerial body and the top decision-making authority within the DoT, convened on January 13, the sources said, adding most of Trai’s suggestions were approved during the meeting.

Some points may require further clarification from the regulator and a reference is expected to be sent back, sources said.

They added that the department rejected telecom operators' requests to retain the current contractual system under the licensing framework. They will likely be permitted to complete their existing licence terms but on renewal, operators must transition to the authorisation model.

Telecom operators expressed concerns over the termination of the contractual system, fearing regulatory instability and potential impact on investor confidence.

Trai defended its recommendations, emphasising that the authorisation mechanism aligns with the new Telecommunications Act's vision of a streamlined framework supported by clear rules.

In September, the regulator suggested that the government shift to granting service authorisations under Section 3(1) of the Telecommunications Act, 2023 instead of continuing with the agreement-based approach.

It also recommended separate detailed rules for service authorisations.

The regulator proposed a unified authorisation model to simplify the regulatory landscape. This approach will allow entities to provide a wide- range of telecom services such as mobile, internet, international calls and satellite communications across the country. Trai had categorised as main, auxiliary and captive all telecom services —  from mobile, internet to international calls.

Trai also advocated for merging various licensing categories to achieve the "One Nation - One Authorisation" goal and proposed reducing entry fees for obtaining these authorisations.