DoT opposes de-linking of licences of network from service delivery

The committee also suggests that de-linking could be addressed in the second phase

The Committee of the Department of Telecommunications (DoT) on Unified Licencing (UL) has opposed the de-linking of licences of networks from delivery of services in the first phase, and has proposed that the de-linking could be addressed in the second phase.

However, allotment of spectrum is de-linked from licence, as earlier.

The DoT Committee on UL has observed that introduction of UL providing either for network services or service delivery or both would bring about fundamental changes in the structure of the sector. It is proposed that the UL, in the first phase, should be structured in such a manner that the subsequent transition to the second phase would be smooth.

According to draft Unified Licence document, the UL regime should allow flexibility to service providers following the cafeteria approach allowing the licence holder to pay as per use. The new and the existing licence holders will have the option to select one or more or all the services on offer through a UL after migration to the new licencing regime.

The cafeteria approach also allows the service providers to apply for UL with a much lower net worth and capital requirement as compared to the earlier licencing regime.

Meanwhile, the minimum networth requirement of Rs 100 crore for providing IPTV services under internet services has been removed noting that Cable Tv operators registered under the ministry of Information & Broadcasting can offer TV services on IP without any networth requirement, according to the UL draft.

Licence holders will have to adopt renewable energy technologies for providing telecom network, deploy energy efficient equipment and reduce the carbon footprint, the Committee has noted in the draft.

The DoT Committee has noted that the licence fee will be eight% of the adjusted gross revenue.

The DoT Committee has also stated that the cross holding condition should be enforced through the terms and conditions of the UL that allows a single company or legal entity to have only one Unified Licence.

It is stated that no licencee company or its promoters or beneficial owners of the licencee company or its promoters, either directly or indirectly, shall hold substantial equity  (10% or more) in and or shall have voting rights in the proceedings of the Board of any other Access Service Licensee Company holding access spectrum in the same service area.

Last week, a top DoT official had said that the ministry would seek opinion of the law ministry on the unified licencing (UL) guidelines within a week. The DoT had earlier planned to issue the final notification of the new UL guidelines by end of April.

There is no major change in the guidelines from what the DoT committee had recommended, said the source. “UL would be finalised very soon,” added the source.