No entry fee for licence migration, suggests Trai

The Telecom Regulatory Authority of India (Trai) on Friday proposed operators need not pay entry fee to migrate to unified licences.

The draft guideline, would provide relief to companies that offer only select services such as internet and cellular mobile services.

Releasing the draft guidelines for unified licence/class licence and migration of existing licences, Trai said, "For conversion to the unified licence (restricted), there shall be no additional entry fee for the licencee. All existing telecom licences on their expiry will be automatically converted to unified licence (restricted)."

There are various telecom licences but most of them are for providing only select services like internet services, national and international long distance connectivity. There are also firms that hold unified access services licences. They can provide all kinds of telecom services.

Trai has also proposed that in case a unified licence (restricted) wants to expand its bouquet of service they will have to apply for unified licence.

"A holder of unified licence (restricted) shall have the option to apply for and migrate to a unified licence," the draft said. In case a holder of unified licence (restricted) desires to expand or alter the services offered or service area of operations, it shall be required to migrate to unified licence but will have pay the prescribed entry fee.

The regulator has proposed an entry fee of Rs 20 crore for national level, Rs 2 crore for each metro and A category, Rs 1 crore for each B category, Rs 50 lakh for each C category service areas and Rs 15 lakh for each district level unified licence.

A company seeking migration from unified licence (restricted) to unified license will have to pay portion of fee that will be fixed by Trai on per annum basis.