The Telecom Regulatory Authority of India (TRAI) has put the process of ushering in a new licencing regime on the fast track.
The regulator has released its recommendations on Unified Licences and is looking at a three-month timeframe to wrap up the entire process.
In particular, this move will be beneficial for the players facing licence cancellation, as a unified license would mean that any telecom company can apply for licenses, even without owning spectrum. Further, the licencee can provide services that do not rely on paid spectrum.
Prior to this, in January 2012, the regulator had released draft guidelines for the Unified Licensing Regime for consultations with all stakeholders.
However, very few of its earlier proposals found their way into the final document. Earlier, the regulator had suggested that the unified licence entail an entry fee of Rs 200 million, down from Rs 16.58 billion currently. This amount has been further reduced to Rs 150 million in the latest guidelines.
However, the entry fee will not come bundled with spectrum, which has to be obtained via the auction process. Currently, a pan-India licence includes 4.4 MHz of start-up GSM spectrum or 2.5 MHz of CDMA spectrum.
Meanwhile, TRAI has reiterated its earlier suggestion that operators be permitted to apply for these licences at a state or district level, but at half the original amount. Now, the regulator has said that service level permits ought to be provided for Rs 10 million, except in Jammu and Kashmir and the North East, where the licencee may be charged Rs 5 million. At the district level, the regulator has suggested an entry fee of Rs 1 million.
With regard to the penalties to be imposed in case of violation of licence norms, TRAI has suggested that the amount be fixed at Rs 100 million. Further, it has said that the penalty amount ought to be decided based on the nature and scope of the violation. The regulator has also differentiated between major and minor violations and recommended separate penalty amounts for each category.
TRAI has also adhered to its earlier proposal of bringing tower companies under the scope of the unified licence regime. These companies will have to shell out a fee to bag the permit and have to have a minimum net worth and paid up equity capital of Rs 250 million to be eligible for a pan-India permit.
For the sum of Rs 150 million, all existing operators will be able to migrate to the new regime and will thereafter be placed in the ?restricted? category, which implies that their licence is valid for as long as their current licence. Upon expiry of their existing permits, the companies will need to renew the same, which will then no longer fall under the ?restricted? category.
All in all, it is evident that the government is pulling out all stops to ensure that the sector gets back on its feet after the recent uncertainties.
