TRAI Seeks Inputs On New Authorizations Under the Telecom Act: Is OTT Authorization On the Horizon?

The Telecom Regulatory Authority of India (TRAI) has questioned whether there is a need for new authorizations or sub-categories of authorizations under the Telecom Act, 2023 in a recently released consultation paper. As per India’s telecom regulations, any company/person seeking to provide telecommunication services (calling, messaging, internet access, etc) is required to obtain a specific authorization. Telecom companies have been arguing for years that similar authorization should be required for over-the-top (OTT) communication services like WhatsApp and Telegram, as demonstrated by the deliberations in a July 2023 consultation paper.

During the July 2023 consultation, telecom companies had demanded ‘same service, same rules’ wherein they wanted to comply with the same requirements that telcos have to meet such as quality of service, and contributions to the universal service obligation fund (now called Digital Bharat Nidhi). Despite the consultation process ending last year itself, the authority has yet to put out any recommendations on whether or not OTTs should be brought under the regulatory ambit.

While some have interpreted the question pertaining to authorizations in the current TRAI consultation as leaving room for the regulation of over-the-top (OTT) communication services, the question has not been raised in the context of OTT services. In fact, OTT services are not mentioned anywhere in the paper. Rather, it was raised in the context of the lack of telecom authorization at a district level and virtual network operators (VNOs). TRAI mentions that the VNO authorization regime allows a separate category of operators to receive district-level authorization. It suggests that if a similar service area is introduced for access services (calling and messaging), it could encourage smaller players to enter the provision of bundled wireline and internet services.

What is this consultation about?

TRAI’s consultation paper seeks to create a framework for service authorizations to be granted under the Telecom Act. This is in response to a letter from the Department of Telecommunications (DoT). This framework must include the terms and conditions for licensing including fees for said licenses.

Currently, there are 22 services for which the DoT provides a license including access services (calling and messaging), internet services, virtual network operation, and satellite services. The DoT has asked TRAI to examine the possibility of reducing the number of authorizations to improve the ease of doing business.

Other points for consultation:

Making authorization documents leaner:

The government grants unified licenses for providing access services and VNO services in India. To receive these licenses, the company applies to the government for the licenses with a non-refundable processing fee and an undertaking to comply with the terms and conditions required for the grant of the license and the license agreement. If the applicant is found to be eligible, they will be required to submit to the government an entry fee, bank guarantees, and an undertaking to comply with the terms and conditions.

TRAI notes that the authorization/licensing documents of other countries such as Australia and the US are lean and only contain essential elements. It says that deliberation is needed to the extent to which the entire terms and conditions of the license should be included in the licensing document. Instead of this, the terms and conditions could be covered under the rules to be made under the Telecom Act.

Should satcom be included within the scope of the unified license?

In 2013, the government introduced the unified licensing regime under which an eligible entity could obtain one or more authorizations under the unified license such as access service, internet service, and national and international long-distance services. If an entity chooses to obtain authorization for all services, it has to lower entry fees, bank guarantees, and application processing fees as compared to the cumulative fees it would pay for individual authorizations.

TRAI is considering whether the authorization for satellite-based telecom services (satcom services) should also be included within the scope of the unified license. The authority believes that this could enable efficient network design, optimization of infrastructure, and provision of a full range of services using any media. However, TRAI argues that certain players may want to offer one or a few services in specific areas, and such an option should remain available.

Clubbing two different kinds of satellite service authorizations:

Currently, there are two separate authorizations for satellite services—

While the access service authorization (the one telcos have) allows for both public and closed telecom network services, satcom providers are not allowed to have a combined authorization for the same services. TRAI suggests that there is a need to consider merging the two satcom authorizations under the Telecom Act for operational efficiency.

Allowing ISPs to provide VPN services:

Virtual private networks (VPNs) establish a digital connection between a computer and a remote server owned by a VPN provider. This creates a point-to-point tunnel that encrypts user data, masks their IP address, and lets users sidestep website blocks and firewalls on the internet, according to a blog post by Microsoft.

TRAI argues that while internet service providers (ISPs) might have the ability to provide VPN services, current regulations don’t allow them to do so. It mentions that there is a ‘prima facie’ need to enhance the scope of ISP authorization by including VPNs within its service area.

Making the regulation of VNOs lighter:

The paper notes that access services through VNOs have not proliferated well in the country. The Unified License for VNOs currently contains similar terms and conditions as prescribed under the access service license for telcos. This is despite the fact that globally, the service delivery operator layer usually has light touch regulation. As such, TRAI argues that to encourage service innovations, there could be a need to make the terms and conditions applicable for VNOs lighter.

Key questions for consultation:

  1. Whether authorization should be issued to the applicant entity instead of the government entering a license agreement with the entity? In such a case, is there any need for safeguards to protect the interests of the authorized entities?
  2. What should be the structure of such authorizations?
  3. Is it appropriate to keep only the essential aspects of authorization within the authorization document (such as validity, scope of service etc) and for the terms and conditions to be conveyed through rules made under the Telecom Act?
  4. Is there a need to introduce a unified service authorization at the national level for the provision of end-to-end telecommunication services pan India?
  5. Whether the provision of VPN services should be included within the scope of ISP authorization.
  6. Is there a need to merge the GMPCS and commercial VSCAT CUG service authorizations?
  7. What amendments are required to be incorporated in the terms and conditions of authorizations for providing telecommunications services using satellite-based resources in light of the India Space Policy-2023/ the Telecom Act in the Space Sector?

Comments to the consultation can be sent by 1 August 2024 and counter comments can be sent by 8 August 2024 to [email protected].

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Link nội dung: https://hnou.edu.vn/avt-trai-a13654.html