Department of Telecommunications' Recommendations Prompt a Detailed Reply from Telecom Regulatory Authority of India
The Telecom Regulatory Authority of India (TRAI) has issued a detailed formal response to the Department of Telecommunications (DoT) regarding the Terms and Conditions of Network Authorisations under the Telecommunications Act, 2023. The response addresses the DoT's back-reference dated July 3, 2025, which was sent under the Telecom Regulatory Authority of India Act, 1997.
The initial request from the DoT was made on July 26, 2024, asking TRAI to suggest terms and conditions, including applicable fees, for granting authorisations to establish, operate, maintain, or expand telecommunication networks under the 2023 law. TRAI submitted its detailed recommendations on February 17, 2025, after consulting stakeholders and industry representatives.
In its response, TRAI reaffirms most of its original recommendations while providing clarifications and some revised positions in response to DoT's concerns, especially regarding fees, regulatory compliance mechanisms, and provisions for satellite communication networks.
Key Points of the Revised Terms and Conditions
Authorization Framework
TRAI proposed a clear structure for granting licenses to establish, operate, maintain, or expand telecommunication networks, including satellite communication networks as requested by DoT.
Applicable Fees and Charges
TRAI recommended a fee structure for network authorisations, including license fees, performance-related fees, and applicable charges aligned with the 2023 Act. These fees are designed to encourage compliance and reflect the new regulatory environment.
Bank Guarantees
TRAI suggested including a requirement for telecom operators to furnish bank guarantees to secure financial dues such as license fees, performance fees, and penalties. The bank guarantee mechanism ensures prompt payment and compliance, and protects regulators from financial defaults.
Regulatory Compliance and Enforcement
TRAI emphasized the need for stronger enforcement powers, including the possibility for the regulator to impose penalties and sanctions independently without recourse solely to magistrate proceedings. TRAI recommended upgrades to its enforcement authority to enable better compliance monitoring and deterrence of violations by operators.
Stakeholder Consultations
The response reflects inputs from extensive consultations with industry players and stakeholders starting from July 2024, ensuring recommendations consider practical challenges and the evolving telecom landscape.
Transparency and Policymaking
TRAI has made its detailed response publicly available, enhancing transparency in the regulatory process. The final decision on implementing these terms and conditions now rests with the DoT.
In summary, TRAI maintains its original recommendations with some adjustments while stressing the need for effective compliance mechanisms such as bank guarantees and stronger enforcement powers. The framework covers terrestrial and satellite network authorisations under the new Telecommunications Act, 2023, aiming to modernize and clarify the regulatory regime for telecommunication networks in India.
The full official response document released by TRAI provides exhaustive details on the terms, fees, and regulatory conditions for network authorisations under this Act. The regulator's response to the DoT's back-reference has now been made publicly available on its official website. Some recommendations might not be accepted as proposed or would require modification, prompting the regulator to revisit its earlier stance.
[1]: Link to TRAI's official response document [2]: Link to DoT's initial request [3]: Link to TRAI's initial recommendations [4]: Link to TRAI's response on enforcement powers [5]: Link to TRAI's response on bank guarantees
- The telecom industry will be influenced by the new regulatory framework for network authorizations under the Telecommunications Act, 2023, as proposed by TRAI, which includes a fee structure for network authorizations, bank guarantee requirements, and strengthened enforcement powers in the finance sector.
- The detailed response from TRAI to the Department of Telecommunications (DoT) regarding network authorizations discusses not only the terms and conditions for telecommunication networks but also the applicability of fees, which will have a significant impact on the financial landscape of the telecom industry.
