The TRAI’s recommendations on unbundling of various layers through differential licensing is expected to facilitate increased sharing of network resources, spur entry of new players while reducing costs and encouraging investments, industry body Broadband India Forum said on Friday.
The telecom regulator has suggested that a separate authorisation be created for access network provider to offer network services on a wholesale basis.
Broadband India Forum (BIF) said that sector regulator’s recommendations would boost competition and efficiency.
“TRAI recommendations would enable increased sharing of network resources, facilitate entry of new players, reduce costs, encourage investments and promote innovation,” BIF said in a statement.
The recommendations uphold the objectives of the National Digital Communications Policy (NDCP) “fittingly” and would pave a progressive way forward for the sector in terms of improved technological prowess, healthy competition, effective operations and economies of scale.
Reforming the licensing and regulatory regime via unbundling of different network layers through differential licensing would help facilitate the entry of new players into the market, and promote ease of doing business.
“They would also act as a catalyst for bringing in new technologies into the industry, which would promote innovation. Enabling sharing of network resources will further strengthen the foundation for deploying advanced wireless services like 5G/6G, by facilitating cooperation and partnerships,” it said.
Commenting on TRAI’s recommendations, TV Ramachandran, President of Broadband India Forum, said the recommendations provision active sharing of network resources and infrastructure, which would lead to increased efficiency in delivery of services by the network operators.
“Possibly the first such measure in 26 years to reform the legacy structure of bundled licensing into segregated network layers, this is in line with the best global practices and would boost ease of doing business,” Ramachandran added.
It is pertinent to mention that the recommendations by the Telecom Regulatory Authority of India (Trai) aim to create a separate licence authorisation for access network provider and moot a broad framework for virtual network operators (VNOs) seeking and entering into an pacts with the network providers.
The implementation of the recommendations is expected to result in increased sharing of network resources, reduction of cost, investment, and strengthening of the service delivery, and could also prove to be catalyst in proliferation of 5G services, Trai said on Thursday.
“A separate authorisation under unified licence should be created for access network provider (network layer) to provide network services on a wholesale basis,” Trai had said.
Under this new authorisation, the access network provider would not be permitted to directly provide services to the end customers.
The scope of the access network provider would be to establish and maintain telecom network, including wireless and wireline infrastructure, and selling the network services (capable of carrying voice and non-voice messages and data) on a wholesale basis to VNOs (service delivery operators) for retailing purpose.
“The access network provider should also be permitted to provide/share its network resources to/with the telecom service providers who are licensees…and vice versa,” Trai said. PTI