Trai moots cut in initial Financial Bank Guarantee, easier noms for captive VSAT CUG license

Telecom regulator Trai on Friday suggested slashing initial financial bank guarantee -- submitted by a firm prior to signing of captive VSAT CUG license -- by half to Rs 15 lakhs, and creation of a single window mechanism to cater to requirements of the applicants.

Telecom Regulatory Authority of India (Trai) has recommended that the royalty charges should be limited to the assigned frequencies.

"There is no justification for charging additional 25 per cent amount...," it said in a statement.

It has also recommended creation of a single window mechanism to cater to the requirements of applicant/licensee companies for processes involved in obtaining license, and approvals related to space and ground segment.

"The amount of initial Financial Bank Guarantee, which is submitted by the applicant company prior to signing of Captive VSAT (Very Small Aperture Terminal) CUG (Closed Users Group) license, should be reduced from Rs 30 lakhs to Rs 15 lakhs. For subsequent years, it should be equivalent to the estimated sum payable equivalent to the license fee for two quarters," it said.

The regulator had sent its recommendations on 'Captive VSAT CUG Policy issues' to the Department of Telecommunications (DoT) in July 2017.

The latest recommendations and clarifications by Trai are after considering the back reference of the DoT in this regard.