TRAI Releases Recommendation on Network Authorisations Under Telecom Act, 2023

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New Delhi: The Telecom Regulatory Authority of India (TRAI) has released its ‘Recommendations on the Terms and Conditions of Network Authorisations to be Granted Under the Telecommunications Act, 2023.’

These recommendations aim to establish a standardized framework for granting network authorisations, enhancing regulatory clarity and fostering the ease of doing business in India’s telecom sector.

The Department of Telecommunications (DoT) had earlier sought TRAI’s recommendations on the terms and conditions, including fees and charges, for authorisations under Section 3(1)(b) of the Telecommunications Act, 2023.

Additionally, the DoT requested TRAI to consider an authorisation framework for satellite communication networks.

Consultation Process and Stakeholder Engagement

To formulate its recommendations, TRAI conducted a comprehensive consultation process, beginning with a discussion paper released on 22 October 2024.

Stakeholders were invited to submit comments and counter-comments, with the deadline extended upon request. In total, 32 stakeholders provided comments and 11 submitted counter-comments.

TRAI also held an Open House Discussion (OHD) in virtual mode on 17 December 2024, to further deliberate on the subject.

Key Recommendations by TRAI

Centralised Network Authorisation Framework – TRAI recommended that the Central Government should grant network authorisations directly, rather than entering into agreements with entities. The terms and conditions should be prescribed through rules under Section 3(1)(b) of the Telecommunications Act, 2023.
Infrastructure Provider (IP) Authorisation – A new authorisation framework for entities managing dark fibres, right of way, duct space, and telecom towers to ensure seamless connectivity infrastructure.
Digital Connectivity Infrastructure Provider (DCIP) Authorisation – Entities offering wireline and radio access networks, Wi-Fi systems, and transmission links should be authorised under this category.
Internet Exchange Point (IXP) Authorisation – To regulate entities facilitating peering and internet traffic exchange within India.
Satellite Earth Station Gateway (SESG) Authorisation – Ensuring compliance for entities operating satellite gateway stations.
Cloud-hosted Telecom Network (CTN) Authorisation – A new category for cloud-based telecom service providers, allowing them to offer network-as-a-service.
Mobile Number Portability (MNP) Authorisation – TRAI recommended maintaining two MNP zones while allowing future flexibility for changes through competitive bidding.
Content Delivery Networks (CDN) and Ground Station as a Service (GSaaS) – These activities should be exempt from requiring network authorisation under Section 3(3) of the Act.
In-Building Solution (IBS) – Property managers should be allowed to establish, operate and maintain IBS within a single building or compound without requiring government authorisation.
Captive Non-Public Network (CNPN) Authorisation – TRAI recommended the introduction of CNPN Authorisation for enterprises to establish private networks. The government may seek further recommendations on its terms and conditions.
Cable Landing Station (CLS) Authorisation – TRAI suggested exploring the need for a CLS Authorisation to regulate access to essential facilities and co-location at cable landing stations.
Migration Framework for Existing Registrations – A structured transition mechanism should be implemented for entities currently holding Infrastructure Provider Category-I (IP-I) Registration and Mobile Number Portability Service Provider (MNPSP) Licenses to voluntarily migrate to the new framework.

Implementation Roadmap and Fee Structure

TRAI has also suggested a structured fee model for various network authorisations, ensuring affordability while maintaining regulatory oversight. For instance:

Infrastructure Providers (IP) require no entry fee or bank guarantee.
Digital Connectivity Infrastructure Providers (DCIP) need an entry fee of Rs 10 lakh.
MNP Providers must pay an entry fee of Rs 50 lakh and a bank guarantee of Rs 40 lakh.

However, all these these recommendations will now be reviewed by the DoT before potential implementation as regulatory rules under the Telecommunications Act, 2023.