Trai calls for separate network authorisation for telecom infrastructure

In line with similar recommendations for telcos, latest direction calls for ending the practice of signing agreements

The Centre should grant network authorisations under the Telecommunications Act, 2023 instead of entering into an agreement with telecom entities, the Telecom Regulatory Authority of India (Trai) has recommended. To be provided under section 3(1)(b) of the Act, the detailed terms and conditions of each authorisation should be prescribed through separate rules, Trai said on Monday.

 

The regulator has also said the Centre should introduce Infrastructure Provider (IP) authorisation under the same section, and any entity intending to establish or operate dark fibres, right of way, duct space, and towers should obtain the IP authorisation. Meanwhile, a separate Digital Connectivity Infrastructure Provider (DCIP) authorisation would be provided for entities working on wireline access network, radio access network (RAN), transmission links, and Wi-Fi systems.

 

Trai's latest recommendations are in line with its proposals for service authorisations. A service authorisation is about what services a company can offer, while a network authorisation is about the infrastructure used to deliver those services.

 

In a major overhaul of the licensing ecosystem in the telecom sector, the telecom regulator had last week recommended three new categories of authorisations be created to cover the gamut of telecom services in the country in line with the new Telecom Act, 2023.

 

But telecom service operators fear that replacing the current licence regime, based on a “contractual agreement” with the government, could threaten their investors and their investments by creating major “regulatory uncertainty” and lack of “predictability”. Strongly opposing the move, on which there is a broad unanimity between Reliance Jio, Bharti Airtel and Vodafone-Idea Ltd, some of them have argued the new regime will “limit their contractual rights” and their right to challenge any specific terms and conditions introduced by the government.