The Department of Telecommunications (DoT) has released draft rules for providing telecom services under the authorisation regime, under which companies will not need a licence to operate. These draft rules, framed under the Telecommunications Act, will not override the existing licensing system, giving companies the option to choose between the two. Issued on September 5, the draft is titled the Telecommunications (Authorisation for Provision of Main Telecommunication Services) Rules, 2025. Stakeholders have 30 days to submit comments before the final rules are notified.
Unlike the current regime, where telecom firms enter into a contract with the DoT covering all terms and regulations, the authorisation framework will grant companies approval to provide services, with terms and conditions notified separately under the Act. The DoT hopes to make this system attractive so operators voluntarily adopt it, but acknowledges that running both regimes in parallel could create confusion.
Telcos, however, have raised concerns about regulatory uncertainty. They argue that licensing offers safeguards since terms are fixed in the contract and cannot be altered unilaterally by the government, whereas under authorisation, the government could potentially change conditions without prior notice, impacting investor confidence and business planning.
The Telecom Regulatory Authority of India (TRAI) had earlier proposed an overhaul of the licensing framework, recommending a unified authorisation to cover all telecom services, from mobile and internet to international calling, under three categories: main, auxiliary, and captive. The current draft rules focus on the main service authorisation.
