The Telecom Ministry proposed a new licensing regime under which four types of licences would be issued replacing the existing Unified Access Service Licence system.
"We are of the view that the framework of new licensing regime should include four categories of licences," Telecom Minister Kapil Sibal said.
He mentioned that these should be Unified Licence, Class Licence, Licence through Authorisation and Broadcasting licence.
The new licensing framework proposal for National Telecom Policy 2011 is based on recommendations given by the Telecom Regulatory Authority of India in May 2010 and October 2003.
Unified Licence will be issued to service providers instead of Unified Access Service Licence at present. Class Licence will be issued to VSAT service providers.
Sibal mentioned that the guidelines of these licences are yet to be finalised but said all unified licence will be delinked from spectrum.
At present, an UASL holder gets 4.4 Mhz of spectrum bundled with the licence but there will be no such provision in the new licence framework.
"This all (contours) will go to the Telecom Commission but this is what we feel from our side should happen," Sibal said.
Telecom Minister mentioned that his ministry is yet to decide on mechanism to determine pricing and usage of spectrum.
"We need more consultation on it before finalising the policy," Sibal said.