Ministry of Communications
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TRAI releases ‘Recommendations on the Terms and Conditions of Network Authorisations to be Granted Under the Telecommunications Act, 2023’.

Posted On: 17 FEB 2025 6:20PM by PIB Delhi

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

The Department of Telecommunications (DoT) through a letter dated 26.07.2024 informed TRAI that the Telecommunications Act, 2023 has been published in the Official Gazette of India in December 2023. Section 3(1)(b) of the Act provides for obtaining an authorisation by any person intending to establish, operate, maintain or expand telecommunication network, subject to such terms and conditions, including fees or charges, as may be prescribed. DoT, through the letter dated 26.07.2024, requested TRAI to provide its recommendations under Section 11(1)(a) of the TRAI Act, 1997 (as amended), on the terms and conditions, including fees or charges, for authorisation to establish, operate, maintain or expand telecommunication networks under section 3(1)(b) of the Telecommunications Act, 2024.  Further, through its addendum letter dated 17.10.2024, DoT requested TRAI to consider an authorisation for satellite communication network under section 3(1)(b) of the Telecommunications Act, 2024.

In this regard, TRAI issued a consultation paper on ‘The Terms and Conditions of Network Authorisation to be Granted Under the Telecommunications Act, 2023' on 22.10.2024 for seeking comments and counter comments from stakeholders on the issues raised in the consultation paper. The last dates for furnishing comments and counter comments were 12.11.2024 and 19.11.2024 respectively. However, on the request of a few stakeholders, the last dates for furnishing written comments and counter comments were extended to 19.11.2024 and 26.11.2024 respectively.

In response to the issues raised in the consultation paper, 32 stakeholders furnished their comments, and 11 stakeholders furnished their counter comments. As part of the consultation process, TRAI conducted an open house discussion (OHD) through virtual mode on 17.12.2024.

Based on the comments received from stakeholders in the consultation process and on its own analysis, TRAI has finalized Recommendations on the Terms and Conditions of Network Authorisation to be Granted Under the Telecommunications Act, 2023. These recommendations are aimed at fostering growth and enhancing ease of doing business in the telecom sector. Through these recommendations, the Authority has recommended a network authorisation framework, apart from detailed terms and conditions for various network authorisations to be granted under the Telecommunications Act, 2023. Salient points of these recommendations are as given below:

  1. The Central Government should grant network authorisations under section 3(1)(b) of the Telecommunications Act, 2023 instead of entering into an agreement with the entity.
  2. The detailed terms and conditions of each network authorisation should be prescribed through the rules notified under Section 3(1)(b) of the Telecommunications Act, 2023.
  3. For any change(s) in the terms and conditions of the network authorisations emanating from these recommendations, except for the reason of the interest of the security of the State, the Central Government should seek TRAI’s recommendations.
  4. The Rules under Section 3(1)(b) of the Telecommunications Act, 2023 should be organized in the manner given below:
  1. Telecommunications (Grant of Network Authorisations) Rules; and
  2. Separate rules for each network authorisation.
  1. Each network authorisation to be granted by the Central Government under Section 3(1)(b) of the Telecommunications Act, 2023 should be in the form of an authorisation document, containing the essential elements of the network authorisation.
  2. Infrastructure Provider (IP) Authorisation:
  1. The Central Government should introduce Infrastructure Provider (IP) Authorisation under Section 3(1)(b) of the Telecommunications Act, 2023.
  2. Any entity intending to establish, operate, maintain, or expand dark fibers, right of way, duct space and towers should obtain IP Authorisation from the Central Government.
  3. Main scope of IP Authorisation: To provide dark fibres, right of way (RoW), duct space, towers, and in-building solution (IBS) to the entities authorised under Section 3(1)(a) of Telecommunications Act, 2023
  1. Digital Connectivity Infrastructure Provider (DCIP) Authorisation:
  1. The Central Government should introduce Digital Connectivity Infrastructure Provider (DCIP) Authorisation under Section 3(1)(b) of the Telecommunications Act, 2023.
  2. Any entity intending to establish, operate, maintain, or expand wireline access network, radio access network (RAN), transmission links, and Wi-Fi systems should obtain DCIP Authorisation from the Central Government.
  3. Main scope of DCIP Authorisation: DCIP authorised entities may provide wireline access network, radio access network (RAN), transmission links, Wi-Fi systems, and In-Building Solution (IBS) to the entities authorised under Section 3(1)(a) of the Telecommunications Act, 2023. DCIP authorised entities may also provide dark fibers, right of way (RoW), duct space, and towers to the entities authorised under Section 3(1)(a) of the Telecommunications Act, 2023.
  1. In-Building Solution (IBS):

The property manager should be permitted to establish, operate, maintain, and expand in-building solution (IBS) within the limits of a single building, compound, or estate, managed by it. For this purpose, there should be no requirement of obtaining any authorisation from the Central Government under Section 3(1)(b) of the Telecommunications Act, 2023. Here, the term “property manager” means the person who is either the owner of the property or has any legal right to control or manage the property.

  1. Content Delivery Networks (CDN):

The establishment, operation, maintenance, and expansion of Content Delivery Networks (CDNs) should be authorisation-exempt under Section 3(3) of the Telecommunications Act, 2023.

  1. Internet Exchange Point (IXP) Authorisation:
  1. The Central Government should introduce Internet Exchange Point (IXP) Authorisation under Section 3(1)(b) of the Telecommunications Act, 2023.
  2. Any entity intending to establish, operate, maintain, or expand Internet Exchange Points (IXPs) in India should obtain IXP Authorisation from the Central Government.
  3. Main scope of IXP Authorisation: To provide peering and exchange of internet traffic, originated and destined within India, amongst the entities authorised to provide internet service under the Telecommunications Act, 2023, and Content Delivery Network (CDN) providers located in India
  1. Satellite Earth Station Gateway (SESG) Provider Authorisation:
  1. The Central Government should introduce Satellite Earth Station Gateway (SESG) Provider Authorisation under Section 3(1)(b) of the Telecommunications Act, 2023.
  2. Any entity intending to establish, operate, maintain, or expand satellite earth station gateway (SESG) in India should be required to obtain SESG Provider Authorisation from the Central Government.
  3. Main scope of SESG Provider Authorisation: To provide its SESG infrastructure to the entities which are authorised under Section 3(1)(a) of the Telecommunications Act, 2023 and which are permitted to use satellite media under their scope of service
  1. Ground Station as a Service (GSaaS):

The establishment, operation, maintenance, and expansion of the following categories of ground stations (as envisaged in the Norms, Guidelines and Procedures for Implementation of Indian Space Policy-2023 in respect of Authorization of Space Activities (NGP) issued by IN-SPACe in May 2024) should be authorisation-exempt in terms of Section 3(3) of the Telecommunications Act, 2023:

      1. Satellite Control Centre (SCC)
      2. Telemetry, Tracking and Command (TT&C)
      3. Mission Control Centre (MCC)
      4. Remote Sensing Data Reception Station
      5. Ground Station for supporting operation of space-based services such as Space Situational Awareness (SSA), Astronomical, space science or navigation missions etc.
  1. Cloud-hosted Telecom Network (CTN) Authorisation:
      1. The Central Government should introduce Cloud-hosted Telecom Network (CTN) Provider Authorisation under Section 3(1)(b) of the Telecommunications Act, 2023.
      2. Any entity intending to establish, operate, maintain, or expand cloud-hosted telecommunication network should obtain CTN Provider Authorisation from the Central Government.
      3. Main scope of CTN Authorisation: To provide cloud-hosted telecommunication network-as-a-service (CTNaaS) to the eligible entities authorised under Section 3(1)(a) of the Telecommunications Act, 2023
  2. Mobile Number Portability (MNP) Provider Authorisation:
      1. The Central Government should introduce Mobile Number Portability (MNP) Provider Authorisation under Section 3(1)(b) of the Telecommunications Act, 2023.
      2. Main scope of MNP Provider Authorisation: Establishment, operation, maintenance, and expansion of a telecommunication network for providing MNP to the entities authorised to provide Access Service under the Telecommunications Act, 2023; and provision of location routing number (LRN) update to all entities authorised to provide Access Service, NLD Service and ILD Service under the Telecommunications Act, 2023
      3. The present policy regime of two MNP zones, each comprising of 11 authorised service areas (telecom circles/ Metro areas), and only one MNP Provider authorised entity in each MNP zone should be continued at present. However, in future, the Central Government may, if deemed fit, change the number of MNP zones in the country, amend the composition of authorised services areas within each MNP zone, and introduce more MNP Provider authorised entities in each MNP zone through a competitive bidding process.
  3. TRAI has also recommended a comprehensive framework for permitting smooth migration of existing entities holding Infrastructure Provider Category-I (IP-I) Registration and Mobile Number Portability Service Provider (MNPSP) License to the new network authorisation regime under the Telecommunications Act, 2023 on voluntary basis.
  4. Besides, TRAI, through the recommendations, has expressed the following views:
      1. There is a need for introducing Captive Non-Public Network (CNPN) Provider Authorisation under Section 3(1)(b) of the Telecommunications Act, 2023 with the scope of establishing, maintaining, operating and expanding CNPN networks for enterprises. In case the Central Government accepts this recommendation, it may seek the recommendations of TRAI on the detailed terms and conditions for such an authorisation.
      2. Prima facie, there is a need for introducing a cable landing station (CLS) Provider Authorisation with a broad scope of providing access facilitation to the essential facilities at cable landing station, and co-location to facilitate access to the cable landing station to the eligible service authorised entities. In case the Central Government deems it fit, it may send a reference to the Authority for exploring the need for CLS Provider Authorisation under Section 3(1)(b) of the Telecommunications Act, 2023 and the terms and conditions thereof.

 

  1. The following fees have been recommended for various network authorisations:

Sl. No.

Network Authorisation

Application Processing Fee (in Rs.)

Entry Fee

(in Rs.)

Bank Guarantee

(in Rs.)

Authorisation Fee

  1.  

Infrastructure Provider (IP)

 

10,000

Nil

Nil

Nil

  1.  

Digital Connectivity Infrastructure Provider (DCIP)

 

10,000

10,00,000

Nil

Nil

  1.  

Internet Exchange Provider (IXP)

 

10,000

Nil

Nil

Nil

  1.  

Satellite Earth Station Gateway (SESG) Provider

 

10,000

10,00,000

Nil

Nil

  1.  

Cloud hosted Telecom Network (CTN) Provider

 

10,000

10,00,000

Nil

Nil

  1.  

Mobile Number Portability (MNP) Provider

10,000

50,00,000

40,00,000

1% of Adjusted Gross Revenue (AGR)

 

The recommendations have been placed on the TRAI’s website (www.trai.gov.in). For any clarification or information, Shri Akhilesh Kumar Trivedi, Advisor (Networks, Spectrum and Licensing), TRAI may be contacted at Telephone Number +91-11-20907758.

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