In Short:
The Telecom Regulatory Authority of India (TRAI) has published recommendations for a new service authorization framework under the Telecommunications Act, 2023. The Department of Telecommunications (DoT) asked TRAI to suggest terms and fees for these authorizations, leading to a consultation paper in July 2024. Stakeholders actively participated, providing extensive feedback and proposals. Key recommendations include granting service authorizations directly by the central government and creating clear rules for various telecommunications services. The framework also allows authorized entities to lease resources and enhances features for cloud-based services. TRAI outlined 14 rules for different service authorizations and proposed entry fees for various service categories.
TRAI Unveils Recommendations for New Telecom Service Authorisation Framework
In a significant update for the telecom sector, the **Telecom Regulatory Authority of India** (**TRAI**) has taken a bold step by releasing recommendations on the framework for service authorisations as outlined in the **Telecommunications Act, 2023**.
Background of the Act
The **Department of Telecommunications** (**DoT**) recently notified TRAI via a letter dated June 21, 2024, about the publication of the Telecommunications Act, 2023 in India’s official gazette. This pivotal act stresses that any entity or individual wishing to provide telecommunication services must acquire an authorisation, subject to specified terms, conditions, and applicable fees.
Following this, the DoT sought recommendations from TRAI regarding the terms and fees for authorisations under this new legislation, invoking section 11(1)(a) of the **TRAI Act, 1997** (as amended).
Consultation Process
On July 11, 2024, TRAI published a consultation paper focusing on the service authorisation framework. This paper invited comments from stakeholders on 61 pressing issues. Engagement was robust, with 48 stakeholders providing feedback and 17 submitting counter comments.
To further enrich the dialogue, TRAI hosted an open house discussion (OHD) virtually on August 21, 2024, which saw the participation of over 250 individuals. In total, 21 associations, 22 service providers, and a variety of other organizations submitted more than 1700 pages of written input.
Final Recommendations
Drawing from the extensive feedback and TRAI’s own analysis, the authority has now finalised its recommendations on the service authorisation framework. This overhaul aims to enhance both the growth and ease of doing business within the telecommunications sector.
The updated framework includes 14 rules for different types of service authorisations, aimed at modernising the existing licensing regime. Here are some of the key highlights from the recommendations:
- The **central government** should directly grant service authorisations under section 3(1) of the **Telecommunications Act, 2023**.
- Authorisations will be documented concisely, delineating core elements and applicable terms, which will be defined through rules specified in the act.
- Broad guidelines regarding eligibility, service scope, and validity periods will be developed as rules for granting service authorisations.
- Main service authorisations will encompass essential telecommunication services including access, internet, long-distance, satellite communication, and M2M WAN services.
- Captive service authorisations, covering the establishment of dedicated networks after receiving spectrum assignments from the central government, will be governed by distinct terms tailored to each type.
- TRAI encourages the central government to establish a structured progression for financial reporting, numbering resource assignments, and spectrum distribution on a national level.
- Entities will have the option to lease or hire telecommunications resources from certified cloud service providers, as long as these services are housed within India.
- The scope of audio conferencing and similar services will be expanded to incorporate cloud-based EPABX services, now rebranded as ‘**Enterprise Communication Service Authorisation**’.
Looking Ahead
Additionally, TRAI has suggested implementing entry fees for various service authorisations, ensuring a structured approach to this new framework aimed at revitalising the telecom landscape in India.
