The Telecom Regulatory Authority of India plans to tighten the rollout obligation for mobile operators under the new unified licence regime. TRAI wants the Department of Telecom to make it mandatory for mobile companies to install a sufficient number of base stations, make arrangements for subscriber complaint redress, and start commercial services.
Under the present rollout norms, operators need to show geographical coverage. A number of new players that took licences in 2008 set up networks to meet the coverage-based rollout, but consumers never got to subscribe to the service as the operators switched off the network after DoT inspection.
Cross holding
“The very purpose of mandating the rollout obligations is to ensure that the licence and the spectrum given are effectively utilised to give service to the public,” TRAI said, while proposing the change under the proposed unified licence.
Telecom companies will be able to hold stakes in multiple entities in the same operating circle if the TRAI proposal on cross-holding norm is accepted. Under existing rules, telecom players can own a maximum 10 per cent stake in two different entities in the same circle.
But, now, the regulator wants this removed under the new unified licence regime as the licence is being de-linked from spectrum. According to TRAI, the cross-holding norm was to prevent entities from cornering spectrum by picking up majority stakes in different companies.
Reduced Penalties
The regulator also proposes to change the way penalty is imposed on operators violating licence conditions. TRAI has said the penalty should be based on the nature of the violation where a first-time minor infringement should attract a penalty of Rs 1 lakh. The penalty can go up to Rs 10 crore for four violations, and after that the licence can be terminated. At present, the DoT slaps a flat rate of Rs 50 crore for all violation.
Ticks off DoT
TRAI also said it was inappropriate for the DoT to tell the regulator to examine and ‘concur’ with the terms and conditions of the unified licence. The regulator said the TRAI Act does not contain any provision for it to give concurrence to DoT’s proposals.
TRAI also ticked off the DoT for not taking its recommendations before finalising the New Telecom Policy 2012. “The Government has finalised the broad structure of the Unified Licence in NTP-2012 before deliberating on the Authority’s recommendations on Unified Licences, notwithstanding the fact that provisions of the TRAI Act mandate that the Government shall seek the recommendations of the Authority on terms and conditions of Licence to a service provider.”