TRAI Proposes Broad Licensing Reforms, Maintain OTT Exclusions

The Telecom Regulatory Authority of India (TRAI) has released recommendations to simplify the licensing framework under the new Telecom Act, advocating for a 'One Nation One Authorisation' approach.

The proposal excludes OTT services but supports the expansion of satellite services and infrastructure sharing. The statement is particularly noteworthy as telecommunications companies have been advocating for a 'same service, same rules' policy, which would impose similar regulations on OTT platforms as those applied to traditional telecom services.

In July, TRAI issued a Consultation Paper on the framework for service authorisations under the Telecom Act and has since been actively engaging in discussions about regulating OTT communication services. An open house discussion was held on 21 August to address ongoing debates.

Organisations such as Broadband India Forum (BIF), National Association of Software and Services Companies (NASSCOM) and the Internet and Mobile Association of India (IAMAI) have pointed out that OTT services are already regulated under the Information Technology Act 2000.

Additionally, former Telecom Minister Ashwini Vaishnaw confirmed last year that OTT apps fall under the IT Act rather than the Telecom Act.

Nevertheless, telecom companies have continued to advocate for OTT services to be regulated similarly to their own operations. They seek to impose comparable licensing requirements and taxation on OTT platforms to create a 'level playing field' with traditional telecom services.

On 18 September, TRAI released its recommendations on the 'Framework for Service Authorisations Under the Telecommunications Act, 2023'. The recommendations propose allowing satellite-based services to offer calling and messaging capabilities, thereby broadening the range of telecom sector services. TRAI also advocates for increased sharing of both active and passive infrastructure among service providers, which could enhance efficiency and reduce operational costs.

The recommendations include a substantial reduction in entry fees and the categorisation of services into three main segments - main service authorisations, auxiliary service authorisations and captive service authorisations. TRAI has also recommended that the central government should issue service authorisations based on predefined criteria, rather than through entity-specific agreements.