TRAI Permits Telcos to Operate Under Existing Regime Until License Expiry

The Telecom Regulatory Authority of India (TRAI) has announced that telecom operators can continue providing services under the existing licensing regime until their current licenses expire, alleviating fears of regulatory uncertainty among telcos. The proposed new authorization mechanism, which would allow companies to offer services under a unified license with separately notified terms and conditions, will only take effect when existing licenses are up for renewal. TRAI Chairman Anil Kumar Lahoti emphasized that telcos could maintain their current contracts until their licenses expire but will have to transition to the new model upon renewal, paying only the renewal fee. The move aims to provide continuity and clarity for telcos concerned about potential changes in contractual agreements.

TRAI's proposed authorization model simplifies the licensing process by offering a unified license for all telecom services, including mobile, internet, international calls, and satellite connectivity. This new approach would eliminate the need for multiple licenses across different service areas, allowing operators to provide services pan-India with a single authorization. The new model offers benefits such as reduced costs, flexibility, lower entry fees, and the ability to share resources among operators. Additionally, TRAI plans to consult on satellite spectrum pricing and revisit over-the-top (OTT) regulations, with recommendations aimed at enhancing service quality, reducing costs, and expanding telecom services, particularly in remote areas and emergency situations.