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UASL amended

DoT has amended the Unified Access Services Licenses Agreement (UASL) for procurement of telecom equipment.

A letter from Assistant Director General, Prashant Verma on March 10, 2021 informed the Unified Access Service Licensees that “in pursuance to Condition 5.1, the licensor hereby amends the Unified Access Services License Agreement and appends the following sub-clause number 41.6A (iii) (a) in Security Conditions, Part-VI as under:

41.6A (iii) (a). The Government through the Designated Authority will have the right to impose conditions for procurement of telecommunication equipment on grounds of Defence of India, or matters directly or indirectly related thereto, for national security. Designated Authority for this purpose shall be National Cyber Security Coordinator. In this regard, the licensee shall provide any information as and when sought by the Designated Authority

Designated Authority shall notify the categories of equipment for which the security requirement related to Trusted Sources are applicable. For the said categories of equipment, Designated Authority shall notify the Trusted Sources along with the associated Telecommunication Equipment (Trusted Products). The Designated Authority may also notify a list of Designated Sources from whom no procurement can be done. Procedure for inclusion of Telecommunication Equipment in the list of Trusted Sources will be issued by the Designated Authority.

With effect from 15th June 2021, the licensee, shall only connect Trusted Products in its network and also seek permission from Designated Authority for upgradation of existing Network utilizing the Telecommunication Equipment not designated as Trusted Products. However, these directions will not affect ongoing Annual Maintenance Contracts (AMC) or updates to existing equipment already inducted in the network as on date of effect.

The licensees shall comply with the Guidance for Enhanced Supervision and Effective Control of Telecommunication Networks, as per guidelines to be issued by the licensor.

This amendment shall be part and parcel of the UAS License Agreement and all others

Terms & Conditions shall remain unchanged.”

INDUSTRY RESPONDS
“This is a good step from a security standpoint as telecom is a critical infrastructure. For the industry, this would have some impact on the CapEx depending upon which trusted sources are notified. It might lead to cost escalation and make a compelling case for telcos to hike the tariffs.”

Prashant Singhal, TMT Emerging Markets Leader, EY
“This was expected in light of the 5G auctions. The recent incidents allegedly by Chinese hackers have definitely hastened the process with the government inclined towards a new national strategy to strengthen the country’s security. Such a policy decision, which definitely impacts significant market players, clearly conveys the government’s stand on national security,”

Tony Verghese, partner, J Sagar Associates
“TEMA welcomes this critical decision to amend the licence condition of telecom operators to incorporate National Directive on Security in Telecom. This was much awaited. This is critical decision taken in the interest of National Security. This will also promote domestic manufacturers, as there is some relaxation for them as per directives. One more important step towards Atmanirbhar Bharat.”
NK Goyal, TEMA 
CT Bureau

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