The Telecommunications Act, 2023 provided a new legal architecture for telecom regulation in India. Under Section 3(1)(b) of that Act, any person intending to establish, operate, maintain or expand a telecommunication network must obtain authorisation, subject to terms, conditions, fees, etc., to be prescribed via rules.
In February 2025, TRAI (Telecom Regulatory Authority of India) issued Recommendations on the Terms and Conditions of Network Authorisations under the 2023 Act. These recommendations set out how authorisations should work, what obligations might attach, associated fees, scope, etc.
Now, the Telecommunications (Authorisation for Provision of Main Telecommunication Services) Rules, 2025 (in draft) have been released by the Department of Telecommunications (DoT). These draft rules operationalize the authorisation regime for “main telecommunication services” – covering services like unified service, access service, internet service, long-distance services etc.
So effectively, these rules seek to replace or run alongside the older licensing regime (which remains optional for those who don’t opt in) and streamline the regulatory burden.
Key Features of the Draft Rules / TRAI Recommendations
Here are the major components of the proposed authorisation framework:
- Voluntary Migration / Dual Regime
Entities (telcos, service providers, etc.) may choose to adopt the new authorisation regime; existing licensees can continue under the current licensing regime if they wish. - Validity & Renewal
- The authorisation under “main telecommunication services” is proposed to have an initial validity of 20 years from the effective date, unless curtailed or revoked earlier as per the rules.
- Renewal is possible, with a request by the authorised entity at least 12 months before expiry. No entry fee at renewal (but possibly a nominal fee) according to TRAI’s recommendations.
- Scope & Non‑Exclusivity
- Authorisations are non‑exclusive: more than one entity may be authorised to offer the same type of service in the same area.
- The area of authorisation is at the national level. So, service providers authorised under the rules can operate across the country.
- Fees, Entry Requirements, & Guarantees
- There are application processing fees, entry fees, and bank guarantee requirements proposed for various types of authorisations. For example, for Mobile Number Portability (MNP) – an entry fee, bank guarantee, and fee tied to revenue (“adjusted gross revenue”) are suggested.
- For infrastructure providers, Digital Connectivity Infrastructure Providers (DCIP), Satellite Earth Station Gateway (SESG) providers, etc., different fee / guarantee structures are proposed.
- Types of Network Authorisations Proposed
TRAI recommends introducing specific authorisations under Section 3(1)(b), such as:
- Infrastructure Provider (IP) authorisation: entities that establish/operate dark fiber, right of way, duct space, towers, etc.
- Digital Connectivity Infrastructure Provider (DCIP): wireline access, radio access, Wi-Fi etc.
- Satellite Earth Station Gateway (SESG) Provider authorisation; Mobile Number Portability (MNP) provider authorisation; Cloud‑hosted Telecom Network (CTN) provider authorisation; Internet Exchange Points (IXP) authorisation.
- Content Delivery Networks (CDNs) are proposed to be exempt from authorisation under certain provisions.
- Equipment Standards & Other Obligations
- Authorised entities will need to use equipment conforming to standards set by the Telecom Engineering Centre or, if absent, equivalent international standards.
- There are also provisions for lawful interception, monitoring, security, etc., consistent with central government instructions.
Implications: What This Means for Stakeholders
- Ease of Doing Business: The move from licensing to authorisation (voluntary for now) simplifies many regulatory hurdles—less negotiation, more predefined terms. Uniformity across services and national authorisation lowers barriers to entry.
- Investment & Competition: Lower entry fees (in some cases), clearer obligations and non‑exclusivity encourage new players, infrastructure investment, and possibly better services.
- Regulatory Clarity & Predictability: Specifying validity periods (e.g. 20 years), renewal terms, scope, and conditions helps companies plan long term. Having clearly defined categories of authorisation (IP, DCIP, SESG, etc.) reduces ambiguity.
- Security & Oversight: Obligations about equipment standards, lawful interception, or monitoring imply that regulation over compliance and security will remain strong. This may impose costs.
- Impact on Existing Licensees: Those with old licenses may need to consider whether to migrate to the authorisation regime. Migration rules, eligibility, and possibly meeting new conditions may be required.
Challenges & Areas to Watch
- Implementation Details: The draft rules are not yet final; many terms will depend on what the final wording is, especially in rules for each type of authorisation.
- Compliance Costs: Even with authorisation, many obligations (security, interception, standards, etc.) may require investment, especially for smaller or newer players.
- Enforcement & Monitoring: Ensuring that authorised entities comply with the terms (service quality, security, non‑interference, etc.) will require effective regulatory oversight.
- Balancing Flexibility vs. Control: The state’s power to modify terms in the interest of national security, or revoke authorisation, or take over parts of networks in emergencies—these must be clearly defined to avoid arbitrary use.
- Transition Issues: How to handle transition from existing licensing to authorisation, dealing with legacy obligations, possible overlapping licences, etc.
Conclusion
The proposed Telecommunications (Authorisation for Telecommunication Network) Rules, 2025 represent a significant reform in India’s telecom regulatory landscape. They embody a shift towards greater regulatory clarity, simplified authorisation in lieu of burdensome licensing, and fostering competitive, innovation‑friendly investment. At the same time, guaranteeing security, compliance, and avoiding regulatory overreach remain pressing concerns. For companies, policymakers, and consumers alike, much depends on how these drafts are finalized, implemented, and enforced.