Telecom Regulatory Framework Update

Context 

The Department of Telecommunications (DoT) is in the process of refining the service authorisation framework for telecom operators. This comes as part of efforts to make the new regime more appealing for voluntary adoption by telecom companies.

Key Points of Consideration

• Adjusted Gross Revenue (AGR):
  DoT has requested the Telecom Regulatory Authority of India (TRAI) to provide clarity and additional information regarding AGR in the context of the proposed authorisation framework.
• Feedback from TRAI:
  TRAI, which believes its recommended authorisation regime improves on the current licensing system, will be responding to DoT's request for further clarity and inputs.
• Telcos' Concerns:
  • Telecom operators have expressed concerns over the potential end of the contract system, fearing it could introduce uncertainty.
  • There is apprehension about a dual system—authorisation and licensing—leading to confusion and potential litigation.

Strategic Approach

• Voluntary Adoption:
  The DoT aims for stakeholders to voluntarily migrate to the new authorisation regime within a specified timeframe, rather than imposing it through a mandate.
• Legal Considerations:
  The DoT is cautious about legal challenges that could arise if telcos are forced to adopt the new regime, as the tenure of existing licences is legally binding.