The Telecom Regulatory Authority of India (TRAI) has issued its recommendations on ‘Rationalisation of Entry Fee and Bank Guarantees’.
In July 2022, TRAI floated a consultation paper on the rationalisation of entry fees and bank guarantees. An open house discussion (OHD) was also convened on the issues raised in the consultation paper in December 2022. 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 said subject.
In order to facilitate the orderly growth of the telecom sector and ease of doing business, TRAI has made recommendations to the government for reducing the entry fees across various licence authorisations and the merging of bank guarantees. It is expected that reductions in entry fees will lead to the entry of new service providers in the market, increase investment and enhance competition in the telecom sector. The merging of bank guarantees will encourage ease of doing business and enable licensees to make investments, leading to the sector’s growth. Both these measures will improve the quality of service and enhance consumer welfare.