Telcos to shift to new regime after current licences expire: Trai chairman

According to Lahoti, in the new regime that Trai has recommended, the government will have to make fresh reference to Trai in case of any amendments other than those related to security.

Telcos to shift to new regime after current licences expire: Trai chairman
Chairman of the Telecom Regulatory Authority of India (TRAI) Anil Kumar Lahoti (File photo: Central Railway/YouTube)

After recommending a unified service authorisation to shift from licensing regime under the Telecom Act, the Telecom Regulatory Authority of India (Trai) on Wednesday said the telecom operators can continue to operate under their existing licences till their expiry.

This means that once the Trai recommendations are accepted by the department of telecommunications (DoT), the operators will not be required to immediately shift to authorisation regime.

“As long as their existing licence is valid, they can continue to provide the service under that. There is no restriction and no time frame recommended by Trai,” Trai chairman Anil Kumar Lahoti told reporters.

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“When the licence validity expires, they have no option. The renewal will have to be on the new authorisation regime,” Lahoti added.

This clarification comes as a relief for the telcos in the interim, because they had expressed concerns that the scrapping of their licences would create regulatory uncertainty and affect investor confidence.

In the current licencing regime, telcos have a contractual agreement with the government which is binding, and the same can be challenged by them in the court of law in case the government changes something. In the new regime, however, the telcos say they would lose that power as the government will have the power to change terms and conditions without their consultation.

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However, Lahoti said that such apprehensions are misplaced. “Such apprehensions are not well founded. Even in the existing licensing regime, the final power is with the government to carry out any amendment in the terms and conditions,” he said.

According to Lahoti, in the new regime that Trai has recommended, the government will have to make fresh reference to Trai in case of any amendments other than those related to security. Trai will then carry out an open house discussion on the subject.

“This is a far more transparent process that will be introduced now,” the chairman added.

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On Tuesday, telecom operators had urged communications minister Jyotiraditya Scindia to maintain continuity in the agreement between them and the government after the conversion of licencing regime into authorisation.

Trai’s recommendations have come after the Telecommunications Act, 2023 paved the way for replacing the present licensing regime with an authorisation mechanism.

The regulator has recommended three broad categories for services under the authorisation regime. The categories are: Main service authorisations, auxiliary service authorisations and captive service authorisations. Trai has also recommended reducing the entry fee for such authorisations by up to 50% in select categories.

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Satellite spectrum consultation in few days

The Telecom Regulatory Authority of India (Trai) will issue a consultation paper pricing of the satellite spectrum and other modalities related to that in the next few days, chairman Anil Kumar Lahoti said on Wednesday.

Once Trai shares the recommendations, and the department of telecommunications (DoT) accepts that, it will pave way for companies like OneWeb, Starlink, Jio, to start satellite internet services in the country.

Separately, Trai is also taking up the issue of regulation for over-the-top apps like WhatsApp, Telegram, and Google Meet.

“The new definition of the Telecom Act does not explicitly mention OTT. All discussions took place on the subject were prior to the Telecom Act and, now we will take a considered view with changed circumstances,” Lahoti said.

The chairman said Trai will explore if OTT apps need to be regulated under the Telecommunications Act 2023.

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This article was first uploaded on September twenty-six, twenty twenty-four, at fifteen minutes past two in the night.
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