The Department of Telecommunications (DoT) assures the telecom operators that it will relax the provisions in the draft spectrum allocation rules suggested by TRAI to let the telcos remain under the existing licensing regime, thereby not disabling them from buying spectrum in the future. The telcos had earlier conveyed their limitations in complying with the draft rules. 

Telecom operators are urging the department to continue with the existing contractual framework and oppose the proposed shift to an authorization regime that does not include such agreements. ET reports that the department has agreed to the telcos' demand and assured them that the draft can be tweaked to enable them to continue with the licensing arrangement. 

Awaiting Final Rules

"While DoT has given indications of relaxing the provision, it will be clear only when the final rules are notified," an industry executive tells ET. As per the general expectations, the final set of spectrum allocation rules is expected to be notified shortly after the department concludes the ongoing industry-wide consultations.

To read more about the recommendations of TRAI regarding satcom spectrum allocations, click here! 

Bone of Contention 

As per the draft spectrum allocation rules suggested by TRAI, any new entrant or existing organization can participate in the spectrum auction, but soon after the successful bidding, they would need to apply for authorization within seven days of the receipt of the demand letter. Otherwise, the concerned company stands to lose the earnest money deposit (EMD) for its participation in the auction.

Hence, the draft rules make it necessary for the telcos to shift to an authorization regime, however indirect it is. 

Single Authorization Regime 

The Telecom Regulatory Authority of India (TRAI) has proposed a single, unified authorization that would enable companies to offer a range of telecom services—including mobile, internet, landline, and satellite communication—nationwide, replacing the current licensing regime. The Department of Telecommunications (DoT) is currently working on the framework for this authorization.

No forceful transition 

The department is currently looking into dealing with the fears of the telcos in shifting to a new regime. On the one hand, telcos want the department to continue with the existing arrangement; on the other hand, the department has very clearly conveyed that it won’t backtrack on the idea of authorization. However, it wants the telcos to make the shift out of choice and not under any compulsion from the department. 

To read about DoT's latest take on rules and regulations needed for satcom spectrum allocations, click here!

India’s Telecom Space 

Today, India’s telecom space is characterized by a few players, plaguing debts, rapid transformation, and fierce competition, where any new entrant is not willing to put its feet in for whatever reason. For instance, the Adani Group dropped its plans just a few weeks back to enter the telecom sector, selling its acquired spectrum to Bharti Airtel.

In such a case, fears voiced by the telcos concerning the spectrum allocation rules need proper redressal, tackling the potential impact on the auction receipts, as there are no buyers for spectrum other than the existing telecom operators.