TRAI recommends no licence fee on permits for telecom infra firm

Trai recommended the government creates new permits for digital infrastructure service providers but no licence fee is imposed on the companies

New Delhi: Telecom regulator Trai on Tuesday recommended the government creates new permits for digital infrastructure service providers but no licence fee is imposed on the companies.

Entities registered under the proposed licence will be able to provide both active infrastructures like mobile antennae and base stations and passive infrastructure as service to telecom operators except core network elements and spectrum, according to Trai’s recommendation on “Introduction of Digital Connectivity Infrastructure Provider (DCIP) Authorization under Unified Licence”.

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“The Authority recommends that the new category of licence be called ‘Digital Connectivity Infrastructure Provider (DCIP) Licence’,” The Telecom Regulatory Authority of India (Trai) said in its recommendations.

The regulator has recommended an entry fee of Rs 2 lakh and an application processing fee of Rs 15,000 on DCIP permits.
“The Authority recommends that there should not be any licence fee applicable to DCIP authorization,” Trai said.

Earlier, DoT had introduced Infrastructure Provider II licence which allowed companies to establish digital networks, provide transmission capacity, leasing and sale of end to end bandwidth and such firms were required to pay a licence fee.

The government had discontinued IP II licences in December 2005 as telecom tower companies opposed paying any licence fee for providing infrastructure.

At present, entities that own and operate active network elements are required to pay an 8 per cent licence fee.
Trai has recommended that the proposed DCIP license should not be standalone license, but an authorization under Unified License.

“The Authority recommends that enabling provision should be made by DoT for DCIP Licensees to purchase radio equipment without assignment of any spectrum,” Trai recommended.