Feedback on TRAI Consultation Paper on the Framework for Service Authorisations to be Granted Under the Telecommunications Act, 2023

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Feedback on TRAI Consultation Paper on the Framework for Service Authorisations to be Granted Under the Telecommunications Act, 2023

Vertika Misra

@vertika@nasscom.in

August 13, 2024

Public Policy

In July 2024, the Telecom Regulatory Authority of India (TRAI) released a Consultation Paper on “The Framework for Service Authorisations to be Granted Under the Telecommunications Act, 2023” (Paper) soliciting feedback from the public on the draft. On August 8, 2024, nasscom submitted the feedback on the Consultation Paper.

The Telecommunications Act uses the term ‘authorisation’ (not license as used in the Telegraph Act, 1885) in section 3 where a person intending to provide telecommunication services, establish, operate or maintain telecommunication network or possess radio equipment, shall obtain an authorisation from the central government.

Further, the Telecommunication Act provides that while making rules with respect to authorisation, the government shall provide for different terms and conditions of authorisation. We believe that this provision would be guided by the principle of activity-led and risk-based approach of regulation.

In our response to the draft Telecommunications Bill, we had recommended that the licensing regime should be designed (1) using an activity-led and risk-based approach (2) that ensures obligations on an activity are proportionate to the harms and risks associated with it (3) whilst keeping in mind the need to avoid regulatory overlaps.

With this background, we identified certain services where there is a strong case for rationalisation considering the huge technological advancements and evolved business models. In the past nasscom has consistently advocated for reforming the regulatory framework for these services given the existing framework has had an unintended effect of creating entry barriers and disincentives to entrepreneurs, start-ups and small enterprises looking to create innovative solutions in the respective space.

Given now India has a new telecom law which aims to provide a progressive and inclusive telecommunications ecosystem, this is a good opportunity for TRAI to reconsider our recommendations and address the concerns which is impeding the growth of the above-mentioned services.

Our recommendations included the following services:

Hosted Contact Center Service Providers (HCCPs)

HCCPs function in a manner like the Other Service Providers (OSPs). Hence, they should be treated similar to OSPs, and a similar light-touch regime should be considered.
Adopting this approach would align India with the international practices where value added services (VAS) like HCCPs are not licensed.

Audiotex

Audiotex licenses should be migrated to Authorisation. TRAI’s recommendations on ‘Guidelines for Unified License/Class Licenses and Migration of Existing Licenses’ of April 2012 mention the terms and conditions under which such authorisation should be granted.
The extant financial obligation on audiotex licensees to pay license fee as 8% of their adjusted gross revenue (AGR) is having a debilitating effect on MSMEs and therefore, it should be discontinued with immediate effect.
In the interim period as an immediate measure, until Department of Telecommunications (DOT) notifies a light touch regulatory framework, DOT should clarify that no further demand (impose a moratorium) shall be raised for license fee on the existing audiotex licensees.

Dark Fiber

Allow UL (Universal License)/UL virtual network operator (VNO) access and national long distance (NLD) license holders to provide dark fiber to data centres (DCs).
This would align India with the global position where unlicensed entities have access to dark fiber without regulatory restrictions, if they do not connect to the public telecom network.

Internet exchange points (IXPs)

IXPs should not be brought under any kind of licensing/authorisation regime.
They are set up to merely facilitate the flow of traffic without any connect with end user.
This would align India with the global position where jurisdictions including the U.S., U.K., Hong Kong, South Africa, Singapore, Japan, Brazil, etc. have not imposed regulatory/licensing requirements upon IXPs.

Content delivery networks (CDNs)

CDNs should not be brought under any kind of licensing/ authorisation/ registration regime.
This would align India with the global position where several nations like, Australia, South Korea, Norway, U.S. and European Union does not regulate CDNs with a view to spur investment, innovation, and competition.

Nationwide Internet Telephony License

UL (Access) License for Internet Telephony to various entities offering cloud-based business voice solutions should be granted on a Nationwide basis.
This will enable faster and cost-effective roll out of services which will allow the IT/BPM industry to have a productive engagement with co-workers and their customers.
In the global context, we have not come across a similar regulatory framework which is based on circle-based licensing.

Captive Use Authorisation

Allow Captive Use Authorisation under the Telecommunications Act 2023 enabling Indian enterprises to own, establish and manage Private Enterprise Networks (subsea or terrestrial fibers) for exclusive internal use of the enterprise, and which do not interface with end users.
Since this authorisation will not have spectrum allocation and will be only for captive use, various related regulatory obligations may not be required/applicable under this authorisation.

Please see the attachment for our detailed submission and recommendations. For more details, please write to Vertika Misra at: vertika@nasscom.in and Sudipto Banerjee at: sudipto@nasscom.inwith a copy to policy@nasscom.in.

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Vertika Misra

Director - Public Policy