DoT notifies rules for new authorisation regime aims to ease compliance

DoT notifies a unified telecom authorisation framework, replacing multiple licences and mandating AI-driven fraud prevention measures

The Department of Telecommunications (DoT) on Wednesday notified provisional rules for the new authorisation regime, which will replace multiple licences with a single overarching permission to provide “principal telecom services”, including pan-Indian or circle-wise telecom, internet, and long distance services, thus enabling ease of doing business for the sector. 

Existing legacy licence holders will migrate to authorisation, while new applicants would have to seek fresh authorisation, as per eligibility norms, through a single-window clearance mechanism for obtaining the same. The rules require telecom operators to deploy artificial intelligence (AI) and big data analytics for fraud prevention. Anti-spoofing and anti-fraud measures will also have to be implemented. Data will have to be kept within India, in adherence to existing data location norms. 

 

“The new authorisation framework is one of the most important telecom regulatory reforms in recent years. By replacing the legacy licensing regime with a streamlined authorisation structure, the government aims to simplify compliance and better accommodate evolving technologies. The focus will now shift to implementation and whether the new framework delivers the regulatory certainty and the ease of doing business that this sector has been seeking,” said Tony Verghese, partner at JSA Advocates and Solicitors. According to the rules, authorisations can be issued to multiple entities for the same service for a maximum of 20 years. This would reduce overlapping of licences and will enable the entry of new players and the expansion of specialised players, like mobile virtual network operators. Entry fee per authorisation for national level ranges between ₹10 lakh and ₹12 crore, which becomes maximum of ₹3 crore in case of a virtual network operator (VNO). Minimum net-worth for unified service for network operators stands at ₹25 crore and for VNO at ₹10 crore. 

The rules specify satellite network, ea­rth stations, and VSAT (very small aperture terminal) providers within the ambit of authorisation, but clarify that this authorisation will not cover spectrum allocation or assignment or gateway perm­issions, and that separate government approvals and compliance rules will continue. 

The rules also detail out security conditions that must be met by every new entity, including demonstrating lawful interception systems and lawful interception monitoring facilities, ensuring that the permitted satellite network is “not used for any unauthorised activities including surveillance and electronic warfare, or in a manner that may prejudice the sovereignty and security of India”. Terminals connecting to the service if imported must only be operable within Indian borders, and imports of such terminals may not need Customs clearance. Operation, maintenance, and control facility for the satellite earth station gateway and user terminals connected with the satellite network of a new authorised entity shall be located in India.

Vinish Bawa, leader of telecom practice at PwC India, said that satellite will help telecom service providers economically extend coverage to areas where tower or fiber deployment is challenging. “Satellite becomes the fourth pillar of digital infrastructure alongside fiber, mobile networks, and data centres. This strengthens India’s digital resilience and improves connectivity redundancy. We may see more partnerships than competition between telcos and satellite operators,” he added.

 

“The sector could unlock fresh investments across gateways, ground stations, satellite terminals, managed services, edge infrastructure, and integrated connectivity solutions. It creates a new growth segment within India's broader digital infrastructure ecosystem,” he noted further.

 

The rules also introduce comprehensive compliance obligations, including performance guarantees, periodic reporting, separate accounting as per authorisation and data retention rules other than mandatory audit certifications. While this may increase regulatory and compliance burden, the requirement of unconditional bank guarantees with the potential of encashment without interest could raise working capital needs for new entrants as well as incumbents, industry watchers said.

 

The new framework also clarifies cross-holdings. It states that a new entrant holding access spectrum or authorisation for a principal telecommunication service must not have any beneficial interest — such as control or more than 10 per cent equity — in another new authorised entity or licensee in the same category. It also ensures that none of its material shareholders hold such beneficial interest. However, a VNO and parent network operator, VNOs with same parent, and new authorised entity that has access spectrum assigned to it are exempt.

 

“While the new framework presents an opportunity for modernising regulations, simplifying market entry, and better accommodating emerging technologies and business models — such as M2M services, private networks, satellite communications, and other digital connectivity solutions — the question remains how existing and prospective market players will be treated. Further, the conditions of authorisation would also be a key to the treatment of existing licensees, compliances and security obligations, fee structures, and the flexibility for technological innovation. The intention is to see the effectiveness of this regime for the long run,” JSA's Verghese added.