The Telecom Regulatory Authority of India (TRAI) has released its recommendations on ‘Introduction of Digital Connectivity Infrastructure Provider (DCIP) Authorisation under Unified Licence (UL)’. 

TRAI earlier issued a consultation paper titled ‘Introduction of Digital Connectivity Infrastructure Provider Authorisation under UL’ on February 9, 2023, seeking comments and counter-comments from stakeholders. In this regard, an open house discussion (OHD) was also held on June 20, 2023. Based on the comments and inputs received from the stakeholders during the consultation process, discussion held during OHD and further analysis of the issues, the regulator has finalised recommendations on the introduction of DCIP authorisation under UL.

The salient features of the recommendations are as follows:

  • TRAIhas recommended the creation of a new category of licence that allows for the creation of both active as well as passive digital connectivity infrastructure. This DCIP licence should not be a standalone licence, but an authorisation under UL. This licence authorisation should be called “DCIP licence”. There should not be any licence fee applicable on DCIP authorisation.
  • The scope of the proposed DCIP authorisation includes to own, establish, maintain, and work all such apparatus, appliance, instrument, equipment, and system which are required for establishing all wireline access network, radio access network (RAN), Wi-Fi systems, and transmission links. However, it shall not include spectrum and core network elements such as switch, MSC, HLR, IN etc. The scope of the DCIP license also includes right of way (RoW), duct space, dark fibre, poles, tower, feeder cable, antenna, base station, in-building solution (IBS), distributed antenna system (DAS), etc. within any part of India. The scope of DCIP authorisation does not include provisioning of end-to-end bandwidth using transmission systems to any customer or for its own use. However, DCIP will be allowed to install wired transmission link (but not wireless) to connect to its own baseband unit (BBU)/radio unit (RU)/antenna.
  • Entry fee for DCIP authorisation should be kept at Rs 200,000 and application processing fee at Rs 15,000. The penalty for violation be kept at the level that is prescribed for internet service provider ISP category ‘B’ authorisation. No performance bank guarantee (PBG) be imposed on DCIPs. An amendment should be made in UL to ensure that various licence conditions applicable on hirer (hirer of service obtains and utilises DCI from DCIPs), including the operating and security conditions are not breached due to use of DCI of DCIP. 
  • To keep the authorisation light touch under UL several conditions of part-I of UL have been exempted from applicability to DCIP authorisation.
  • For ensuring compliance of the security conditions,quality of service (QoS), interconnection, non-discrimination etc. of the licence, principal-agent relationship between DCIP and licensed entities have been used for self- regulation whereby DCIPs have been obligated to install DCI items, equipment, and systems in such a way that the hirer of their infrastructure is able to fulfil the licensing conditions including technical, operating, QoS and security conditions, when riding on their DCI items, equipment, and systems; subject to such other directions as licensor or TRAI may give from time to time. DCIPs have also been obligated to ensure that they enter into a formal written agreement with eligible entities before providing access to DCI items, equipment, and systems to them on lease/rent/sell basis. These agreements should invariably contain clauses obligating DCIPs to ensure that hirer of their DCI items, equipment, and systems is able to fulfil the licensing conditions including technical, operating, QoS and security conditions, when riding on their DCI.
  • The DCIP licensees have been allowed to share all infrastructure owned, established, and operated by them under the scope of their authorisation with other licensees under UL (excluding DCIPs) and also with ISPs (not in UL), subject to condition that only such infrastructure will be shared that is allowed to be established by other licensee in its own licence. To that effect, the provisions of this clause will have an overriding effect on clause 33 of part-I of the UL.
  • It has been recommended that the DCIP licensees shall provide DCI items, equipment, and systems on lease/rent/sale basis to any entity (excluding other DCIPs) having a valid licence under section 4 of Telegraph Act 1885, and entities notified by the government for this purpose. DCIP licensees who are also licensed under the Electricity Act are proposed to be allowed to offer such infrastructure (that are permitted under the scope of this authorization) on access rights basis. TRAI also recommends that the Department of Telecommunications (DoT) should add a similar clause in the IP-I registration agreement.
  • It has also been recommended that DCIP licensee should be eligible to apply for an issue of licence under the Indian Wireless Telegraphy Act, 1933 to possess such wireless telegraphy apparatus (without assignment of any spectrum) that is permitted under the scope of DCIP authorisation. However, the DCIP authorization holder should not be eligible to apply for an assignment of any kind of licensed spectrum. 
  • TRAI had earlier, vide its recommendations on ‘Use of street furniture for small cell and aerial fibre deployment’ had recommended that enabling provisions or suitable terms and conditions be introduced in all telecom licences and infrastructure provider (IP-I) registration agreement prohibiting the telecom service providers (TSPs)/IP-I providers from entering into any exclusive contract or RoW with infrastructure owners/controlling administrative authorities (CAAs) or any other authority. The regulator has reiterated its recommendation. In line with the same, in the DCIP authorisation, it has been recommended that the DCIPs should be forbidden from entering into legally binding contractual agreements conferring indefeasible right of use (IRU) of its DCI to specific eligible entity(ies), which may lead to the exclusion of others. TRAI has also recommended that a similar clause may likewise be introduced in IP-I registration.