TRAI seeks views on cutting entry fee for virtual network operator licences

Telecom Regulatory Authority of India (TRAI) has released a Consultation Paper on “Rationalization of Entry Fee and Bank Guarantees”.

Department of Telecommunication (DoT) through its letter dated 3rd March 2022 has informed ThAI that as per the current Unified License! Unified License (Virtual Network Operators) regime, there is a provision of different Entry Fees and two separate bank guarantees i.e., Financial Bank Guarantee and Performance Bank Guarantee for each service authorization.

In this background, DoT requested TRAI to provide its recommendations under the terms of clause 11 (1)(a) of TRAI Act, 1997 (as amended), taking into account the following views of DoT:

• Entry Fee should be reduced and made uniform across allauthorizations
• Both bank guarantees should be merged and amount of a single Bank guarantee may be prescribed for each authorization.

In this regard, a Consultation Paper on “Rationalization of Entry Fee and Bank Guarantees”, seeking inputs from the stakeholders has been placed on TRAI’s website. The consultation paper raises specific issues on the subject for obtaining the views of stakeholders. Written comments on the issues raised in the Consultation Paper are invited from the stakeholders by 23” August, 2022 and counter-comments by 6th September, 2022.

CT Bureau