The Department of Telecommunications (DoT) has notified draft rules for providing telecom services under the authorisation regime, wherein companies won’t be required to get a license to offer such services.
The draft rules, notified under the Telecommunications Act, however, shall not override the current licensing regime and companies will have the option to choose.
“It has been written in the Telecom Act itself that the authorisation mechanism will not override the current regime. The telcos will have the option to choose. Authorisation mechanism is much simpler and will reduce the compliance burden,” an official told ET.
So far, the DoT has notified various rules under the Telecom Act and now has come out with the main authorisation for providing telecom services. These rules may be called the Telecommunications (Authorisation for Provision of Main Telecommunication Services) Rules, 2025.
“These rules shall not override the terms and conditions of actions taken under the Indian Telegraph Act, 1885 (13 of 1885), including issuance of licenses, registrations or permissions, by whatever name called, undertaken pursuant to the Indian Telegraph Act, 1885 (13 of 1885), which shall continue in accordance with sub-section (6) of section 3 of the Act,” the draft, issued on September 5, said. Stakeholders can submit their comment within 30 days after which final rules will be notified.
While the DoT can’t mandate telcos to migrate to the authorisation regime, it wants to make the new regime lucrative, so that companies voluntarily choose the new mechanism. Otherwise, there would be two regimes functioning simultaneously, creating confusion and other complexities.
In the authorisation mechanism, a company will be authorised to offer services while terms and conditions are notified separately under the Telecommunications Act. The structure is different from the current regime wherein there is a contract between DoT and a telecom firm, and all the rules and regulations are part of the contract.
The telcos had expressed unhappiness over the authorisation proposal, fearing that such a move would ring in regulatory uncertainty and undermine investor confidence.
As per the telcos, when an operator gets a licence, all terms and conditions are specified, which allows them to plan their future roadmap. So even if the government wishes to change certain terms and conditions, it cannot do so unilaterally, and a notice must be given to the telcos first. But this safeguard may be missing in the new regime, and the government may unilaterally change the conditions.
Trai had recommended a complete overhaul of the licensing regime, suggesting a unified authorisation to offer all kinds of telecom services from mobile and internet to international calls across the country, and three broad categories of service — main, auxiliary and captive. The DoT has now notified draft rules for the main telecom service authorisation.
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The draft rules, notified under the Telecommunications Act, however, shall not override the current licensing regime and companies will have the option to choose.
“It has been written in the Telecom Act itself that the authorisation mechanism will not override the current regime. The telcos will have the option to choose. Authorisation mechanism is much simpler and will reduce the compliance burden,” an official told ET.
So far, the DoT has notified various rules under the Telecom Act and now has come out with the main authorisation for providing telecom services. These rules may be called the Telecommunications (Authorisation for Provision of Main Telecommunication Services) Rules, 2025.
“These rules shall not override the terms and conditions of actions taken under the Indian Telegraph Act, 1885 (13 of 1885), including issuance of licenses, registrations or permissions, by whatever name called, undertaken pursuant to the Indian Telegraph Act, 1885 (13 of 1885), which shall continue in accordance with sub-section (6) of section 3 of the Act,” the draft, issued on September 5, said. Stakeholders can submit their comment within 30 days after which final rules will be notified.
While the DoT can’t mandate telcos to migrate to the authorisation regime, it wants to make the new regime lucrative, so that companies voluntarily choose the new mechanism. Otherwise, there would be two regimes functioning simultaneously, creating confusion and other complexities.
In the authorisation mechanism, a company will be authorised to offer services while terms and conditions are notified separately under the Telecommunications Act. The structure is different from the current regime wherein there is a contract between DoT and a telecom firm, and all the rules and regulations are part of the contract.
The telcos had expressed unhappiness over the authorisation proposal, fearing that such a move would ring in regulatory uncertainty and undermine investor confidence.
As per the telcos, when an operator gets a licence, all terms and conditions are specified, which allows them to plan their future roadmap. So even if the government wishes to change certain terms and conditions, it cannot do so unilaterally, and a notice must be given to the telcos first. But this safeguard may be missing in the new regime, and the government may unilaterally change the conditions.
Trai had recommended a complete overhaul of the licensing regime, suggesting a unified authorisation to offer all kinds of telecom services from mobile and internet to international calls across the country, and three broad categories of service — main, auxiliary and captive. The DoT has now notified draft rules for the main telecom service authorisation.
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