TRAI Recommendations on the Framework for Service Authorisations to be Granted Under the Telecommunications Act, 2023

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TRAI Recommendations on the Framework for Service Authorisations to be Granted Under the Telecommunications Act, 2023

Vertika Misra

@vertika@nasscom.in

September 27, 2024

Public Policy

The Telecom regulatory Authority of India (TRAI) had issued a Consultation Paper on the subject in July 2024. Nasscom in its feedback highlighted that the new Telecommunication Act, 2023 uses the term ‘authorisation’ instead of ‘license’ (the Telegraph Act and other telecom laws used the term ‘license’). Such use provides scope or flexibility to make different terms and conditions of authorisation in the drafting of rules. Given this progressive legislative development and citing our principal position, we stated that authorisation regime should be based on activity-led and risk-based approach where obligations should be proportionate to the harms and risks associated with it. Building on these principles, we recommended rationalising the existing regulatory frameworks with respect to dark fiber, HCCPs, audiotex, IXPs, CDNs, nationwide internet telephony license, and allowing captive use authorisation for enterprises.

Further, in our counter comments we stated that OTTs are not under the ambit of Telecommunications Act 2023 and hence should not be brought under service authorisation. We reiterated our position that OTTs and TSPs complement each other, wherein both make substantial investments, and they are subject to adequate regulatory frameworks, respectively.

TRAI has released the recommendations on September 18, 2024. In line with nasscom suggestions, TRAI has not recommended inclusion of OTTs under any authorisation. Also, TRAI has moved from licensing to Authorisation for Audiotex services and have also included HCCSPs under the same. The exact recommendation is:

The scope of Audio Conferencing/Audiotex/Voice Mail service authorisation should be enhanced to include Cloud based EPABX service also. Further, as these services are being provided, generally, to the enterprise customers, the name of the authorisation should be changed to Enterprise Communication Service Authorisation, and it should be included in the category of Auxiliary Service authorisations.

Some of the other main recommendations are as follows:

TRAI has recommended that the service authorisations should be organized in the following manner:

Main service authorisations
Auxiliary service authorisations
Captive service authorisations

The Rules under Section 3(1)(a) of the Telecommunications Act, 2023 should be organized in the manner given below:

Telecommunications (Grant of Service Authorisations) Rules
Telecommunications (Main Service Authorisations) Rules
Separate rules for each auxiliary service authorisation
Separate rules for each captive service authorisation

The Telecommunications (Main Service Authorisations) Rules should cover the terms and conditions for providing services under the main authorisations, such as access service, internet service, long distance service, satellite-based telecommunication service, M2M WAN service etc.

The service authorisations under the category of main service authorisations, should be granted in the role of Network Service Operator (NSO) or Virtual Network Operator (VNO), based on the request of the applicant. The service authorisation granted in the role of NSO should authorise the entity to deploy a fullscale network as well as to provide services as per the scope of the service authorisation. On the other hand, the service authorisation granted in the role of VNO should authorise the entity to provide services as per the scope of the service authorisation by using the network services of its parent NSO.

In respect of each auxiliary service Authorisation, a separate rule containing the terms and conditions for the provision of respective auxiliary services such as PMRTS, M2M and WLAN/ WPAN connectivity service, IFMC, etc. should be formulated, which should be included in the respective rules for the provision of auxiliary services.

In respect of each captive service Authorisation, a separate rule containing the terms and conditions for the provision of respective captive services such as CMRTS, CNPN, Captive VSAT CUG etc. should be formulated.

In addition to the service specific authorisations, a Unified Service authorisation should be introduced with the National level service area. The scope of Unified Service authorisation should include the provision of main telecommunication services namely, Access Service, Internet Service, Long Distance Service, Satellite-based Telecommunication Service, and M2M WAN Service.

An authorised entity holding the Unified Service authorisation should have complete flexibility to carry its own traffic within its service area i.e. at National level.

The eligibility conditions, which have already been recommended for the grant of new authorisation(s) to new applicants, should also be made applicable to the existing entities which intend to migrate to the new authorisation framework under the Telecommunications Act, 2023. However, at the time of migration to the new authorisation framework, the requirement of meeting with the net-worth criteria should not be made applicable.

For service authorisations introduced under the Telecommunications Act, 2023 which correspond to the existing license/ registration/ permission etc. under the extant licensing regime, the entities holding the license/ registration/ permission etc. under the extant licensing regime should be allowed to migrate to the corresponding service authorisation under the Telecommunications Act, 2023.

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Vertika Misra

Director - Public Policy