TRAI proposes no licence fee on permits for telecom infra firm

The government had discontinued IP II licences in 2005 as telecom tower companies opposed paying any licence fee for providing infrastructure.

The Telecom Regulatory Authority of India (TRAI) on August 8 recommended that the government creates new permits for digital infrastructure service providers but no licence fee is imposed on the companies.

As per TRAI's recommendation on "Introduction of Digital Connectivity Infrastructure Provider (DCIP) Authorization under Unified Licence," registered entities will be authorized to offer active infrastructure such as mobile antennae and base stations, along with passive infrastructure services to telecom operators. This scope excludes core network elements and spectrum.

"The Authority recommends that the new category of licence be called 'Digital Connectivity Infrastructure Provider (DCIP) Licence'," TRAI said in its recommendations that were unveiled in a press release.

The regulator has recommended an entry fee of Rs 2 lakh and an application processing fee of Rs 15,000 on DCIP permits.

"The Authority recommends that there should not be any licence fee applicable to DCIP authorization," TRAI said.

Earlier, DoT had introduced Infrastructure Provider II licence which allowed companies to establish digital networks, provide transmission capacity, leasing and sale of end to end bandwidth and such firms were required to pay a licence fee.

The government had discontinued IP II licences in December 2005 as telecom tower companies opposed paying any licence fee for providing infrastructure.

At present, entities that own and operate active network elements are required to pay an 8 percent licence fee.

TRAI has recommended that the proposed DCIP licence should not be a standalone licence, but an authorization under a Unified Licence.

"The Authority recommends that enabling provision should be made by DoT for DCIP Licensees to purchase radio equipment without assignment of any spectrum," TRAI recommended.

(With agency inputs)