The Telecom Regulatory Authority of India (TRAI) has proposed that the powers to issue licences to telecom companies would be brought under its purview. The regulator has said that since spectrum and licences are being separated, the Government could focus on allocating airwaves while the licensing function should be entrusted to TRAI.
This is part of the regulator's final recommendations on the new unified licensing regime.
The regulator has reiterated its earlier view to have three levels of Unified Licence: National, Service area and District.
Lower fees
However it has suggested lower entry fees — Rs 15 crore for a national-level licence, Rs 1 crore for circle level, and Rs 10 lakh for a district. It had earlier suggested entry fees of Rs 20 crore, Rs 2 crore and Rs 25 lakh respectively.
Though this licence will have no spectrum bundled with it, companies will be able to offer all types of services across the country. This includes unrestricted Internet telephony, which could turn out to be a boon for such broadband ventures as Reliance Infotel.
Can offer voice
Broadband and Internet service providers under the current policy are not allowed to offer voice services. Under the new regime, they can take a unified licence for just Rs 15 crore and offer voice services.
Under the existing rules, licences are service- or circle-specific.
For example, Airtel has different licences for mobile services, long-distance telephony, Internet service, and fixed-line operations. It also has different licences for each circle. Under the new regime, Airtel can take just one national-level unified licence.
Operators under the existing regime will be migrated to the new scheme, whereby the entry fee already paid will be adjusted on a pro-rata basis for the remaining validity period of various licences.