TRAI defends key recommendations on telecom service authorisations framework

TRAI defends key recommendations on telecom service authorisations framework

The response follows a back-reference from the DoT dated 14 January 2025

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Department of Telecommunications (DoT) regarding several aspects of its September 2024 recommendations on the framework for service authorisations under the Telecommunications Act, 2023.

The response follows a back-reference from the DoT dated 14 January 2025, in which the government indicated several of TRAI's original recommendations from September 2024 may require modification or might not be accepted.

The regulatory exchange began in June 2024 when the DoT requested TRAI's input on terms, conditions and charges for telecommunications service authorisations under the new Act. After consultations with industry stakeholders, TRAI submitted its initial recommendations in September last year.

Having examined the government's concerns, TRAI has now finalised its reconsidered position. The complete response has been published on the TRAI website.

In a detailed document, TRAI has stood firm on several key recommendations that the DoT had expressed reservations about, particularly regarding the structure of service authorisations.

The regulator defended its position on introducing separate authorisations for satellite-based telecommunications and Machine-to-Machine (M2M) services, rejecting the DoT's suggestion to integrate these within broader service categories. TRAI argued that separate authorisations would better promote investment and operational focus in these niche segments.

"To attract business entities to enter the relatively underdeveloped satellite-based telecommunication service segment in the country, and to preserve the business focus of such entities, a separate service authorisation is necessary," TRAI stated in its response.

The authority also reiterated its recommendation that for any substantive changes to authorisation terms and conditions, the Central Government should seek TRAI's recommendations, emphasising the importance of regulatory stability in a capital-intensive sector.

Additionally, TRAI maintained its position on the need for sub-circle level authorisations to enable smaller service providers to operate efficiently within limited geographic areas.

To read the full TRAI rebuttal please click here.