Telecom operators hit back at DoT, Trai on service authorization plans

Say Trai's role may get diluted, satco, OTT concerns unmet

Telecom operators on Wednesday claimed that the Department of Telecommunications (DoT) and Telecom Regulatory Authority of India (Trai) have not addressed their concerns on over-the-top (OTT) communication services and satellite communication, in the proposed service authorisation framework.

 

In a major overhaul of the licensing ecosystem in the telecom sector, the telecom regulator had last year 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.

 

In a key move, it had also called for replacing the current license regime based on a “contractual agreement” with the government, in favour of a system where the government grants authorisation to telecom operators.

 

The Cellular Operators Association of India (COAI), which represents Reliance Jio, Bharti Airtel and Vodafone Idea said this could threaten long-term investors and their investments by creating major “regulatory uncertainty” and lack of “predictability”.

 

But the concerns have not been addressed so far.

 

“While this request has not been addressed, further, in the back reference to DoT issued by Trai on 28 February, it is noted with concern that the role of Trai may be diluted as it has been stated that with respect to minor or procedural amendments, the licensor may not seek recommendation from the regulator,” it said on Wednesday.

 

Meanwhile, COAI has been advocating satellite communication should be used for enhancing the coverage in uncovered rural areas and has stated the need for a level playing field between terrestrial service providers and satcom service providers in all other areas.

 

“This important issue has not been addressed by DOT or by Trai. This non-addressal will adversely affect investors’ sentiments,” it said.

 

In the new authorisation regime, a new ‘Satellite-based Telecommunication Service Authorisation’ has been proposed for commercial satellite services, merging the erstwhile VSAT-CUG service and GMPCS licenses.

 

Satellite-based telecom providers will also be permitted to make use of the satellite earth station gateways established in India for servicing foreign countries, after obtaining government permission.

 

COAI also reiterated that the new authorisation excluding OTT communication is a big concern as this omission perpetuates an uneven competitive landscape, with telcos continuing to bear the weight of extensive compliance and security requirements.

 

As part of its call for “same service same rules”, the industry body had submitted OTTs should be included under Access Services authorisation under the new framework.