For much of India’s telecom history, regulation was governed by two key laws: the Indian Telegraph Act, 1885, and the Indian Wireless Telegraphy Act, 1933. The Telegraph Act provided the government with exclusive control over telegraph services, granting licences for operating telegraphs within India. Similarly, the Wireless Telegraphy Act regulated radio equipment possession, requiring individuals or entities to obtain licences for their wireless devices. This regulatory foundation, rooted in generalised licensing, established a broad framework for telecommunications but did not address specific service and network types as the sector evolved. Later, the Telecom Regulatory Authority of India Act, 1997, brought the Telecom Regulatory Authority of India (TRAI) and the Telecom Disputes Settlement and Appellate Tribunal into the regulatory mix, creating oversight bodies for telecom service regulation and
dispute resolution.
The Telecommunications Act, 2023, significantly modernises this regulatory landscape by replacing the earlier framework with a distinct authorisation-based approach. Section 3 of the act grants the central government the authority to issue specific authorisations for telecom services, network operations and radio equipment possession. Unlike the previous all-encompassing licence model, the new act delineates between service and network authorisations, providing a tailored regulatory approach for different
telecom functions.
To enhance the regulatory framework and streamline processes for all key stakeholders, TRAI has released a consultation paper on the terms and conditions for network authorisations under this act, aiming to gather industry feedback on the operational guidelines, fees and other regulatory requirements necessary for these distinct authorisation types.
Issues for consultation
- Authorisation for infrastructure providers
In India, infrastructure provider Category 1 (IP-1) registration has been open since 2000, allowing companies to lease passive assets, such as dark fibre, duct space and towers, to telecom licensees without the requirement of a formal licence. Over time, the Department of Telecommunications (DoT) expanded IP-1’s role to include certain active infrastructure, such as antennas and feeder cables, provided they were installed for licensees. In 2020, TRAI recommended further expansion of IP-1’s scope, including elements of wireline and wireless networks, while excluding core elements such as switches. A consultation in 2023 proposed merging IP-1 with a new digital connectivity infrastructure provider (DCIP) category, potentially creating a unified framework under the Telecommunications Act, 2023, for streamlined infrastructure provision. To this end, TRAI has sought inputs as to whether there is a need to merge the scopes of the existing IP-I and DCIP authorisation (as recommended by TRAI in August 2023), into a single authorisation under the Telecommunications Act, 2023. - Authorisation for CDN and IXP
TRAI’s 2022 recommendations aimed to promote India’s data economy by establishing regulatory frameworks for content delivery networks (CDNs), data centres and internet exchange points (IXPs). Key recommendations included registering CDN providers with DoT, simplifying IXP authorisation requirements and introducing a separate IXP license under a unified licencing framework. TRAI has now invited stakeholder inputs to refine authorisation terms, scope and conditions under the Telecommunications Act, 2023. - Authorisation for IBS
In-building solutions (IBS) face regulatory challenges regarding their establishment and management within the Indian telecom sector. TRAI’s earlier recommendations highlight that ownership of digital connectivity infrastructure (DCI) should rest with the property manager, who is responsible for its development and maintenance. However, if active wireless equipment is deployed, a licence from DoT is required, complicating access for service providers This raises questions regarding which telecommunication equipment and elements should be included in the ambit of IBS and whether there is a need to introduce a new authorisation under the Telecommunications Act, 2023 for the establishment, operation, maintenance or expansion of IBS by any property manager within the limits of a single building, compound or estate controlled, owned or managed by them. - Authorisation for satellite communication networks
DoT had earlier requested TRAI to consider authorising a satellite communication network under the new Telecommunications Act, 2023. The proposed authorisation aims to enable services for entities already licensed under the act. TRAI’s previous recommendations have indicated that frequency spectrum should be allocated to eligible service licensees based on transponder bandwidth, while satellite earth station gateway licensees would not receive direct spectrum assignments. Additionally, TRAI has suggested a framework for satellite-based telecommunication services that includes global mobile personal communication by satellite and very small aperture terminal services, and encourages collaboration between virtual network operators and network service operator entities. TRAI has now sought feedback on the necessity of a new authorisation to support satellite communication networks as “network-as-a-service (NaaS)” for authorised entities under the Telecommunications Act, 2023. This would address eligibility, scope, operational area, duration and security requirements and clarify spectrum assignment eligibility for such entities. - Authorisation for cloud-hosted telecommunication networks
Third-party cloud-hosted telecommunication networks could play an important role in the virtualisation of telecommunication networks, thereby reducing network costs, improving network resilience and shortening the time to market telecommunication services. Third-party cloud-hosted telecommunication networks could also offer enhanced services, such as unified communication-as-a-service and communication platform-as-a-service. TRAI had earlier recommended that authorised entities be allowed to lease or hire telecommunication network resources from cloud service providers that are either empanelled by the Ministry of Electronics and Information Technology or authorised under the Telecommunications Act, 2023, with the stipulation that these cloud services must be located within India. Furthermore, any network resources obtained from these cloud service providers will be considered part of the authorised entity’s network. Now TRAI has invited views on whether there is a need to introduce an authorisation under the Telecommunications Act, 2023, for establishing, operating, maintaining or expanding cloud-hosted telecommunication networks, which may be used to provide telecommunication NaaS. - Authorisation for MNP service
Mobile number portability (MNP) allows subscribers to retain their mobile numbers when switching providers. TRAI has asked stakeholders for opinions regarding eligibility conditions, area of operation, validity period of authorisation, scope and terms and conditions related to the MNP service.
TRAI has also solicited comments from stakeholders on financial conditions related to various authorisations under the Telecommunications Act, 2023. Earlier, in August 2023, TRAI had recommended that no licence fee should apply to DCIP authorisation while requiring annual revenue statements from DCIP licensees. Meanwhile, applicants for IP-I registration must pay a processing fee of Rs 5,000 along with their application. TRAI has invited views on merging the scopes of IP-1 and DCIP into a single authorisation regarding minimum equity requirements, application processing fees, entry fees and other relevant charges.
Further, the consultation paper discussed considerations for financial conditions if a new authorisation for establishing IBS is introduced under the Telecommunications Act, 2023. TRAI has sought inputs on whether financial conditions should be associated with authorisation under the act for establishing ground stations that may provide ground station-as-a-service (GSaaS).
The paper further notes if authorisation is introduced under the Telecommunications Act, 2023, for establishing, operating, maintaining or expanding cloud-hosted telecommunication networks to provide telecommunication NaaS to authorised entities, several considerations arise, such as the need for financial conditions. TRAI has invited views on what these financial conditions entail.
Furthermore, the paper discussed the migration of existing licensees and registration holders to the new authorisation regime under the Telecommunications Act, 2023, raising questions regarding the appropriate financial conditions for this process.
The way forward
TRAI has been continuously seeking stakeholder inputs on critical issues such as merging infrastructure provider categories and establishing regulatory frameworks for CDNs, IXPs and cloud-hosted telecommunication networks – initiatives aimed at enhancing operational efficiency and supporting a thriving data economy in India. As the sector modernises, it is crucial to maintain a regulatory environment that is both flexible and conducive to technological advancements, especially considering the financial conditions tied to new authorisations, such as for cloud-hosted networks or ground stations providing GSaaS. TRAI has encouraged stakeholders to share insights on these financial implications, ensuring a balanced framework that supports innovation while maintaining accountability. Through inclusive industry dialogue, regulators can better navigate the evolving telecom landscape, building a regulatory regime where innovation and compliance go hand in hand to support long-term sectoral growth.
Niha
