TRAI overhauls network authorisations, boosting structure and revenue in telecom

TRAI overhauls network authorisations, boosting structure and revenue in telecom

New regulations promise a streamlined telecom sector but come with higher fees

TRAI

MUMBAI: The Telecom Regulatory Authority of India (TRAI) has shaken up the telecom sector with fresh recommendations that redefine network authorisations under the Telecommunications Act, 2023. The much-anticipated Recommendations on the Terms and Conditions of Network Authorisations were unveiled on 17 February 2025, setting the stage for a more structured and revenue-driven industry.

This isn’t just a policy tweak—it’s a game-changer. With a range of new authorisation categories and a pricing framework that demands commitment, TRAI is making it clear that the industry’s future lies in structured, competitive, and investment-heavy territory. From satellite gateways to cloud-hosted telecom networks, the revised framework is a playbook for businesses looking to thrive in India’s fast-evolving telecom landscape.

Key among the updates is the introduction of a mix of infrastructure and service provider authorisations, each carrying its own set of fees. Notably, the Mobile Number Portability (MNP) Provider authorisation comes with a whopping Rs 40,00,000 guarantee fee, ensuring only serious players enter the market. But it’s not all about higher costs—TRAI has focused on streamlining processes, reducing bureaucratic hurdles, and fostering innovation while prioritising security.

Companies eyeing infrastructure investments—think dark fibres, towers, and ducts—will now need an Infrastructure Provider (IP) authorisation. Meanwhile, digital connectivity firms can explore the Digital Connectivity Infrastructure Provider (DCIP) authorisation, which encompasses everything from wireline access networks to expansive Wi-Fi systems.

One of the most forward-thinking recommendations includes enabling Cloud-hosted Telecom Networks (CTN), marking a significant step toward the sector’s cloud-powered future. TRAI has also planned for a smooth transition, allowing existing entities to voluntarily shift to the new framework under the Telecommunications Act, 2023, ensuring continuity without disruption.

While the fee hikes may raise eyebrows, TRAI’s ultimate goal is to fortify India’s telecom ecosystem, making it robust, competitive, and future-ready. By enhancing the ease of doing business, fostering investment, and securing the sector’s digital backbone, the regulatory body is charting a course for long-term industry growth.

For those keen to dive into the details, TRAI’s full set of recommendations is available on its website. Whether it’s satellites or fibre optics, India’s telecom landscape is gearing up for a more structured and lucrative future.