TECH TIMES NEWS
Image Source : http://www.trai.gov.in/
New Delhi, February 17, 2025: The Telecom Regulatory Authority of India (TRAI) has released its "Recommendations on the Terms and Conditions of Network Authorisations to be Granted Under the Telecommunications Act, 2023." These recommendations aim to create a structured regulatory framework that fosters ease of doing business and supports the expansion of India's telecom sector.
Background of the Recommendations
The Department of Telecommunications (DoT) requested TRAI's recommendations on July 26, 2024, following the enactment of the Telecommunications Act, 2023, which was published in the Official Gazette in December 2023. As per Section 3(1)(b) of the Act, any entity intending to establish, operate, or expand a telecommunication network must obtain authorisation under prescribed conditions, including fees and charges.
To facilitate this process, TRAI issued a consultation paper on October 22, 2024, inviting stakeholder feedback. A total of 32 stakeholders submitted comments, and 11 provided counter-comments. An Open House Discussion (OHD) was conducted virtually on December 17, 2024, to further deliberate on key issues. Based on this consultative process and its own analysis, TRAI has now finalised and released its recommendations.
Key Recommendations of TRAI
1. Central Government to Issue Network Authorisations
- Under the new framework, network authorisations will be directly granted by the Central Government, eliminating the previous practice of agreements between the government and telecom entities.
- The terms and conditions for each authorisation will be prescribed through rules under Section 3(1)(b) of the Telecommunications Act, 2023.
2. Introduction of New Authorisations for Different Telecom Segments
TRAI has proposed multiple new network authorisations to enhance infrastructure, digital connectivity, satellite communication, and cloud-hosted telecom services.
(a) Infrastructure Provider (IP) Authorisation
- Entities involved in establishing and maintaining dark fibers, right of way (RoW), duct space, and telecom towers must obtain an Infrastructure Provider (IP) Authorisation from the government.
(b) Digital Connectivity Infrastructure Provider (DCIP) Authorisation
- Any entity seeking to operate a wireline access network, radio access network (RAN), transmission links, or Wi-Fi systems must obtain a DCIP Authorisation.
- DCIP-authorised entities will also be permitted to provide dark fiber, RoW, duct space, and towers to other telecom operators.
(c) Internet Exchange Point (IXP) Authorisation
- Entities planning to establish Internet Exchange Points (IXPs) must obtain an IXP Authorisation to facilitate the exchange of internet traffic within India.
(d) Satellite Earth Station Gateway (SESG) Provider Authorisation
- Companies wishing to set up satellite ground stations for communication services must acquire SESG Authorisation.
(e) Cloud-Hosted Telecom Network (CTN) Provider Authorisation
- TRAI has recommended a new Cloud-Hosted Telecom Network (CTN) Provider Authorisation, enabling the operation of cloud-based telecom networks as a service (CTNaaS).
(f) Mobile Number Portability (MNP) Provider Authorisation
- Mobile number portability services will require a dedicated MNP Provider Authorisation to ensure seamless number switching for users.
- The existing two-zone MNP policy (each with 11 telecom circles) will continue for now, but TRAI suggests that the government may restructure zones or introduce competition in the future.
3. Exemptions from Authorisation
To encourage innovation and ease business operations, TRAI has proposed certain exemptions from mandatory authorisation:
- Content Delivery Networks (CDN): Companies managing CDNs for streaming and web services will not require special authorisation.
- In-Building Solutions (IBS): Property managers will be permitted to establish in-building telecom solutions without obtaining authorisation.
- Ground Stations for Space Services: Certain satellite control centres and remote sensing stations will be exempt from authorisation under the Indian Space Policy-2023.
4. Migration Framework for Existing Entities
TRAI has also recommended a smooth transition plan for existing telecom players, allowing voluntary migration from the old licensing regime to the new network authorization framework.
5. Proposed Fee Structure for Different Authorisations
TRAI has outlined an initial fee structure for various network authorisations, ensuring a low barrier to entry while maintaining regulatory oversight.
| Network Authorisation | Application Processing Fee (₹) | Entry Fee (₹) | Bank Guarantee (₹) | Authorisation Fee |
|---|---|---|---|---|
| Infrastructure Provider (IP) | ₹10,000 | Nil | Nil | Nil |
| Digital Connectivity Infrastructure Provider (DCIP) | ₹10,000 | ₹10,00,000 | Nil | Nil |
| Internet Exchange Point (IXP) | ₹10,000 | Nil | Nil | Nil |
| Satellite Earth Station Gateway (SESG) Provider | ₹10,000 | ₹10,00,000 | Nil | Nil |
| Cloud-hosted Telecom Network (CTN) Provider | ₹10,000 | ₹10,00,000 | Nil | Nil |
| Mobile Number Portability (MNP) Provider | ₹10,000 | ₹50,00,000 | ₹40,00,000 | 1% of Adjusted Gross Revenue (AGR) |
Conclusion and Industry Impact
The new recommendations by TRAI introduce a more structured and transparent authorization system that aligns with modern telecom advancements, including satellite communications, digital infrastructure, and cloud-based networks. The move is expected to encourage investment, enhance regulatory clarity, and accelerate India’s digital transformation.
The full recommendations are available on TRAI’s official website (www.trai.gov.in).
News Source : http://www.trai.gov.in/notifications/press-release/trai-releases-recommendations-terms-and-conditions-network