TRAI suggests service authorisations framework, excludes OTT platforms from licensing regime

New Delhi: TRAI on Wednesday proposed a 'unified service authorisation' whose scope would include various forms of telephony services -- from mobile to satellite, landline, broadband and internet -- as the telecom regulator released recommendations on service authorisations framework, that did not explicitly mention OTT.

Categorising services into three broad segments -- main service authorisations, auxiliary service authorisations, and captive service authorisations, TRAI recommended significant reduction in entry fee.

The regulator called for the central government to issue service authorisations, based on predefined criteria, instead of entering into any entity specific agreement.

It proposed that commercial VSAT-CUG service' and 'GMPCS' be merged in a single 'Satellite-based Telecommunication Service Authorisation', according to a TRAI release.

"These recommendations are aimed at a significant revamp of the existing telecommunication service licensing regime in the country and at fostering growth and enhancing ease of doing business in the sector," Telecom Regulatory Authority of India (TRAI) said in the release.

The authority has recommended three broad categories of telecommunication service authorisations -- main service authorisations; auxiliary service authorisations; captive service authorisations.

"Under the new authorisation framework, 'Unified Service Authorisation' has been introduced to achieve the objective of 'One Nation - One Authorisation' across services and service areas," TRAI said.

"An entity holding Unified Service Authorisation can provide mobile service, internet service, broadband service, landline telephone service, long distance service, satellite communication service, Machine to Machine (M2M) and loT service, etc., on a pan-India basis under a single authorisation. Unified service authorised entity will have complete flexibility for routing its domestic traffic," TRAI said.

However, the framework for authorisation did not explicitly mention OTT services -- a key ask by telcos who have been batting for same-service-same rules. Sources said the larger question of whether or not OTT is part of telecom services, was not in this particular reference.

Both VSAT-based FSS and GMPCS services have been included under the scope of satellite-based telecommunication service authorisation.

"The extant restriction on VSAT operators to provide services to only closed user group (CUG) has been removed under the new authorisation framework. Satellite-based telecommunications service providers will also be permitted to make use of the satellite earth station gateways established in India for providing service in foreign countries, after obtaining permission from the Government of India," TRAI said.

According to TRAI recommendations, the main service authorisations cover all primary telecom services such as access services, internet services, long distance services, satellite-based telecommunication services, and M2M WAN services.

"All main service authorisations can be granted in two sub-categories -- Network Service Operator (NSO), and Virtual Network Operator (VNO)," it said.

Auxiliary service authorisations, on the other hand, include all other existing service authorisations (other than captive services), which are in general provided to the enterprise users and not to public at large and have very light touch regulatory oversight," it said.

This includes services such as PMRTS, PM-WANI, M2M Service and M2M service and WPAN/WLAN connectivity service, enterprise communication services, IFMC, data communication service between aircraft and ground stations, etc.

Captive service authorisation covers the service authorisations for establishment of captive network after obtaining assignment of spectrum from the central government, such as CMRTS, CNPN, Captive VSAT CUG, etc.

Under the new authorisation framework, National Long Distance (NLD) service and International Long Distance (ILD) service have been merged in a single authorisation namely, 'Long Distance Service Authorisation'.

This authorisation also permits the establishment of ILD gateway as well as cable landing stations for both domestic and international submarine cables. Carrying domestic traffic through submarine cables connecting two coastal cities of India has been allowed in 'Long Distance Service Authorisation'.

Further, the entry fee for different service authorisations have been significantly reduced, which is expected to open the doors for new service providers, drive fresh investments, and boost competition within the telecom market, TRAI said.