The Telecom Regulatory Authority of India (TRAI) has reiterated its recommendation for the creation of a separate category of licence for access network providers (ANPs) which was rejected by the Department of Telecommunications (DoT).
According to TRAI, a separate licence for ANPs could attract investment and strengthen the service delivery segment. Earlier in August 2022, the regulator recommended enabling unbundling of different layers through differential licencing through the creation of ANPs. The DoT rejected the proposal citing that there may not be a market demand for a separate ANP licence. The department said it was examining another set of TRAI recommendations on enhancing the scope of infrastructure provider category-1 registration, which has facets similar to ANPs.
However, TRAI rejected DoT’s views. The regulatory body stated that it was unclear whether the DoT had conducted any demand assessment study to ascertain market demand for a separate ANP license. The body highlighted that if a separate category of ANP is created, the network provider could build a core network, radio access network (RAN) and team up with virtual network operators (VNOs) for providing services. It added that this could create a win-win environment where it is possible for VNO licensees to support the regime by investing in RAN.
According to TRAI’s proposal, the ANP licensee would establish a telecom network, both wireless and wireline, and acquire spectrum through auctions. The ANP licensee, however, would not be allowed to offer services directly to retail customers, but share the network infrastructure on a wholesale basis with others, including telecom operators or VNOs for service delivery. The authority is of the view that the creation of a separate network-only layer could lead to increased sharing of network resources, reduction of cost and enhanced investment in the sector. It could also prove to be a catalyst in the proliferation of 5G services for industrial users, enterprise users, etc. in a localized manner.
