India

National Policy

The policy and regulatory framework governing telecommunications in India comprises various acts, guidelines, rules, etc.

<callout type=“tip” icon=“true”> List of primary statutes which regulates telecommunications sector in India:

The Indian Telegraph Act, 1885

The Indian Wireless Telegraphy Act, 1933

Telecom Regulatory Authority of India (TRAI) Act, 1997

Telecom Policies formulated by the Government from time to time. Example:

National Broadband Policy, 2004

National Telecom Policy, 2012

National Digital Communications Policy, 2018

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The Indian Telegraph Act, 1885 is the primary legislation underlying the regulatory framework for telecommunications in India. It prescribes various powers of the government to operate and regulate telecommunication services in India. 1) Seth Dua & Associates, In brief: telecoms regulation in India The main objective of the Telegraph Act, when enacted in 1885, was to give power to the Government to install telegraph lines on private as well as public property. 2)https://cis-india.org/telecom/resources/indian-telegraph-act Since then, this act has undergone multiple amendments to accommodate new technologies in communication.

<callout type=“default” icon=“true”> Definition of Telegraph according to the Telegraph Act : “telegraph” means any appliance, instrument, material or apparatus used or capable of use for transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature by wire, visual or other electro-magnetic emissions, Radio waves or Hertzian waves, galvanic, electric or magnetic means. </callout> The Telegraph Act gives the Central Government the exclusive privilege in respect of telegraphs and the power to grant licenses. 3) See Section 4 of The Indian Telegraph Act, 1885 At present, the Department of Telecommunications (DoT) under the Ministry of Communications grants licenses and approvals to telecom service providers (TSPs) in India.

The main objective of the Indian Wireless Telegraphy Act, 1933 is to regulate the possession of wireless telegraphy apparatus. This Act prohibits the possession of wireless telegraphy apparatus, unless a license has been given in that regard by the telegraph authority constituted under the telegraph act. 4) Section 3 and Section 5 of the The Indian Wireless Telegraphy Act, 1933 At present, DoT issues the license to possess wireless telegraphy apparatus.

With the liberalisation of the telecom sector and entry of private players in the 90s, the need for independent regulation became inevitable. Thus, The Telecom Regulatory Authority of India (TRAI) was established w.e.f. 20th February 1997 by an Act of Parliament, called the Telecom Regulatory Authority of India Act, 1997, to regulate telecom services, including fixation/revision of tariffs for telecom services which were earlier vested in the Central Government. 5) Adapted from https://trai.gov.in/about-us/history The TRAI Act also provides for a Telecom Disputes Settlement and Appellate Tribunal (TDSAT) to adjudicate any dispute between licensors (i.e. DoT) and licensee, between two service providers, and between service providers and a group of consumers .6) Section 14 of the TRAI Act, 1997

Telecommunication services play an important role in socio-economic development, and thus the DoT also formulates developmental policies for the accelerated growth of the telecommunication services in India, apart from the grant of licenses . 7)https://dot.gov.in/profile

<callout type=“tip” icon=“true”> DoT has been coming up with telecommunications policy statements at a regular interval. List of Telecom Policies (in chronological order):

National Telecommunications Policy, 1994

New Telecom Policy, 1999

Broadband Policy, 2004

National Telecom Policy, 2012

National Digital Communications Policy, 2018

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The most recent telecom policy is National Digital Communications Policy (NDCP), 2018 . Unveiled by the Government in 2018, the Policy attempts to outline a set of goals, initiatives, strategies and intended policy outcomes. The Policy aims to accomplish the following Strategic Objectives by 2022: 8) Reproduced from Section 1, p. 15 of 24 of National Digital Communications Policy 2018

Provisioning of Broadband for All

Creating 4 Million additional jobs in the Digital Communications sector

Enhancing the contribution of the Digital Communications sector to 8% of India’s GDP from 6% in 2017

Propelling India to the Top 50 Nations in the ICT Development Index of ITU from 134 in 2017

Enhancing India’s contribution to Global Value Chains

Ensuring Digital Sovereignty

It is also important to re-look at the statutes discussed above with regard to explicit provisions for connectivity in rural and remote areas, community networks, etc.

To begin with, the mission of DoT as listed on its website has a special emphasis to connectivity in rural areas: 9) https://dot.gov.in/vision-mission

<callout type=“success” icon=“true”> DoT’s Mission: To develop a robust and secure state-of-the-art telecommunication network providing seamless coverage with special focus on rural and remote areas for bridging the digital divide and thereby facilitate socio- economic development </callout>

The NDCP 2018 mentions specific initiatives for broadband connectivity in rural areas. Although the term “Community Networks” does not explicitly appear in the NDCP document, the term “Public Wi-Fi” finds a mention. One of the goals of the “Connect India” Mission in NDCP 2018 is to “enable deployment of public Wi-Fi Hotspots; to reach 5 million by 2020 and 10 million by 2022” 10) See 2022 Goals in Section 1 of | NDCP 2018 NDCP mentions the promotion of Open Public Wi-Fi Access through W-Fi/ Public Data Office Aggregators and Public Data Offices as a strategy to catalyze investments in the Digital Communications Sector. 11) See (b) (vi) in Section 2.1 on p.9 of 24 of | | NDCP 2018 Prime Minister Wi-Fi Access Network Interface (PM-WANI) initiative of DoT was launched in 2020 to take forward the NDCP’s goal of creating a robust digital communication infrastructure through deployment of Public Wi-Fi Hotspot. 12)https://dot.gov.in/sites/default/files/202-_12_11%20Brief%20PM%20WANI_0.pdf?download=1

NDCP 2018 also strives to ensure inclusion of uncovered areas and digitally deprived segments of society by channelizing the Universal Service Obligation Fund (USOF) and by reviewing the scope and modalities of USOF. 13) Section 1.4, | NDCP 2018

With regard to rights of indigenous people over the use of natural resources such as spectrum, the NDCP 2018 doesn’t mention this explicitly; though it recognizes spectrum as a key natural resource for public benefit. 14) Section 1.2, NDCP 2018

In the mission of “Connect India”, NDCP provides for the establishment of the National Broadband Mission (NBM) as a strategy. In the NBM various initiatives have been suggested to increase connectivity in rural and remote areas. Under the Bharat Net initiative (a flagship project of the Government of India which aims to connect 2.5 lakh gram panchayats across India with Optical Fibre Cables), NDCP targets provision of 1 Gbps (upgradeable to 10 Gbps) to every gram panchayat. The GramNet initiative aims to connect all rural development institutions with 10 Mbps (upgradeable to 100 Mbps). To increase last-mile connectivity, Jan Wi-Fi initiative aims to establish 2 Million Wi-Fi Hotspots. 15) See Section 1.1 on p. 15 of 24 in | NDCP 2018

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Apart from the large programs, some smaller initiatives have also been taken by the Government to connect the unconnected. Examples of such initiatives include:

The Department of Telecom executed a project for providing Mobile Services in 2199 locations in Andhra Pradesh, Bihar, Chhattisgarh, Jharkhand, Maharashtra, Madhya Pradesh, Odisha, Telangana, Uttar Pradesh and West Bengal, which are affected by Left Wing Extremism (LWE). 16) DoT, Telecom at a Glance

The Comprehensive Telecom Development Program for the North East region aimed to connect 8261 villages through installation of 6000 mobile tower sites.17) DoT, Telecom at a Glance

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Operator Licensing

The operator licensing framework in India dates back to The Indian Telegraph Act, 1885. Section 4 of the Telegraph Act gives the Central Government the power to grant license to any person to establish, maintain or work a telegraph within any part of India. 18) See Section 4 of The Indian Telegraph Act, 1885

Although the provision for licensing was always present in the Telegraph Act, the Government had complete monopoly in telecommunications until the early 1990s. It was only in 1992 that the government first allowed licensing in the telecom sector. Listed below in the table are the major landmarks in the history of telecom licensing in India.

Table: Major Landmarks in the History of Telecom Licensing in India 19) Adapted from https://cis-india.org/telecom/resources/licensing-framework-for-telecom

Year	Event in the History of Telecom Licensing
1991	The government allowed private telecom companies to manufacture telecom switches for telephone exchange.
1992	The Department of Telecommunication (DoT) invited bids for licences for cellular service across the four metros. The DoT offered two licences per metro city.
1994	The Government brought National Telecom Policy which laid out the criteria for entry of private operators.
1995	DoT allowed bidding for cellular licences and wireline licences. Spectrum was bundled with the telecom service provider licence. For the implementation of the licensing scheme, the country was divided into 21 circles (excluding four metros) and it was categorized into circles namely A, B and C on the basis of the potential of the circle to generate revenue.
1998	Internet services were rolled out in 1995 by Videsh Sanchar Nigam Limited (VSNL). In November, 1998, the government opened it up to the private sectors.
1999	The New Telecom Policy, 1999 allowed the migration of the licensees from a Fixed Licence Fee Regime to a Revenue Arrangement Scheme. Under the new scheme a licence fee was collected as proportional tax on the service provider’s revenue. Previously, there were two operators in each circle and the 1999 Policy allowed the government to open it up to the private sectors.
2000	The government issued a licence for national long distance telephony (NLDO). There was no restriction on the number of operators to whom the licence was granted. The licence was issued for a period of 20 years on a non-exclusive basis and could be extended upto a period of 10 years once government as the third operator in the circle.
2001	Licence for basic telephone services using wireless in local loop (WLL). This was the first time that the first-come-first-serve scheme was implemented for issuing licences.
2002	DoT issued licenses to private operators for International Long Distance Telephony (ILD) services.
2003
2007	DoT allowed issuing of licences for operating on dual technologies that are CDMA and GSM. DoT also allowed a single licence for Internet Service Providers (ISPs), but restrictions were put on VoIP.
2012	National Telecom Policy, 2012 introduced Unified Licensing Regime. Under the regime, service operators can provide converged services. The spectrum has been delinked from the licence.

<callout type=“success” icon=“true”> NTP 2012 listed down as one of its objectives to simplify the licensing framework to further extend converged high quality services across the nation including rural and remote areas. </callout>

Telecom licensing in India underwent a major transformation with the implementation of the “Unified License (UL)” regime in 2013. This regime was implemented to achieve one of the objectives envisaged in NTP 2012: One Nation - One License across services and service areas. 20) See (12) of Section (III) on p. 6 of 20 in NTP 2012

In NTP 2012, it was recognized that the evolution from analog to digital technology has facilitated the conversion of voice, data and video to the digital form, and these are now increasingly being rendered through single networks bringing about a convergence in networks, services and also devices. 21)https://dot.gov.in/unified-licnse ; NTP 2012

<callout type=“default” icon=“true”> The preamble of NTP 2012 states: “it is now imperative to move towards convergence between various services, networks, platforms, technologies and overcome the existing segregation of licensing, registration and regulatory mechanisms in these areas to enhance affordability, increase access, delivery of multiple services and reduce cost. 22) p.2 of 20, NTP 2012 </callout>

The UL regime replaced the earlier regime in which there were separate licenses for different telecommunication services. In this regime, telco players can offer all telecommunication services under one license; service authorisation for different telecom services will have to be done separately under UL, however.

Listed below are the basic features of Unified Licenses 23) Reproduced from DoT’s website :

The allocation of spectrum is delinked from the licenses and has to be obtained separately as per prescribed procedure. At present, spectrum in 800/900/1800/2100/2300/2500 MHz band is allocated through bidding process. For all other services and usages like Public Mobile Radio Trunking Service (PMRTS), the allocation of spectrum and charges thereof shall be as prescribed by Wireless and Planning and Coordination wing of Department of Telecommunications from time to time.

Authorisation under Unified License comprises for any one or more services listed below:

Unified License (All Services)*

Access Service (Service Area-wise)

Internet Service (Category-A with All India jurisdiction)

Internet Service (Category-B with jurisdiction in a Service Area)

Internet Service (Category-C with jurisdiction in a Secondary Switching Area)

National Long Distance (NLD) Service

International Long Distance (ILD) Service

Global Mobile Personal Communication by Satellite (GMPCS) Service

Public Mobile Radio Trunking Service (PMRTS) Service

Very Small Aperture Terminal (VSAT) Closed User Group (CUG) Service

INSAT MSS-Reporting (MSS-R) Service

Resale of International private Leased Circuit (IPLC) Service

(* Authorization for All Services UL covers all services listed in 2(b) in all service areas, 2©, 2(f) to 2(l) above )

While introducing the UL regime, DoT decided to implement it in two phases. In the first phase, spectrum was delinked from license. In the second phase, the concept of “Virtual Network Operators (VNO)” was introduced to facilitate delinking of licensing of networks from the delivery of services. 24) DoT Guidelines for Grant of Unified License (Virtual Network Operators) dt. 31 August 2018 VNO allows Telecom Service Providers (TSPs) to utilize their networks and spectrum in an efficient manner by sharing active and passive infrastructure, and also facilitates resale at service level.

UL (VNO) is a regime parallel to UL. It offers all authorisations as available in the UL. In addition, it offers an authorisation for the ‘Access Services Category B’ wherein the service area is a District of a State/Union Territory. 25) TRAI Consultation Paper on Enabling Unbundling of Different Layers Through Differential Licensing

Listed below are the basic features of UL (VNO):

VNOs are treated as extension of Network Service Operators (NSOs) or TSPs. They will not be allowed to install equipment interconnecting with network of other NSOs.

Applicant can apply for UL (VNO) along with VNO authorisation for any one or more services below:

Unified License VNO (All Services)

Access Services Category B* (This is additional in case of UL (VNO), Other authorization categories are same as UL, thus not listed here)

<callout type=“success” icon=“true”> Licensing framework for internet services allows three options (options= authorization options available under UL/ UL(VNO) regime): Category-“A” (All India/ National), Category-“B” ( Telecom Circle/ Licensed Service Area), Category- “C”. Thus, there is flexibility of area of operations through three different authorizations ( Secondary switching Area) </callout>

<callout type=“question” icon=“true”> Is centralised procedure for granting ISP licenses suitable for local level entrepreneurs, or does it require decentralisation at the Licensed Service Area (LSA) level? 26) TRAI Consultation Paper on Roadmap to Promote Broadband Connectivity and Enhanced Broadband Speed

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Technical and Administrative Requirements

UL and UL(VNO) can be applied by Indian companies except for Access Service Category B authorisation under UL(VNO) which can be applied for by Indian companies, partnership firms, proprietorship firms, Shops and establishment and legal persons. One company can have only one UL/ UL(VNO). However, the applicant company/applicant can apply for authorisation for more than one service and service area subject to fulfillment of all the conditions of entry.

<callout type=“tip” icon=“true”> Some important resources for UL and UL (VNO)

DoT’s Guidelines for Grant of Unified License

DoT’s Guidelines for Grant of Unified License (Virtual Network Operators)

List of documents required for grant of UL/ authorization for additional services under UL can be found here: See (3) in UL FAQ.

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Licensing Fees

According to DoT’s Guidelines for Grant of Unified License , a licensee has to pay a one-time non-refundable Entry Fee of each service and service area before license agreement is signed. The licensee will need to pay the fees for each subsequent authorisation. In addition to entry fees, the licensee has to pay an Annual License Fees for each authorized service separately. 27) Section (3)(i) DoT Guidelines on UL 20-281/2010-AS-I (Vol VI) dated 28.03.2016 The license fee is calculated as a percentage of Adjusted Gross Revenue (AGR). At present, the license fee is 8 percent of the AGR: It is inclusive of Universal Service Obligation Levy which is 5 percent of the AGR. 28) Source: Section 18.2, License Agreement for Unified License

The table below summarizes processing fees, entry fees, Bank Guarantees, Minimum Paid Up Capital, networth requirements etc.for UL:

Table: Details of Minimum required Equity, Minimum Net Worth, Entry Fee, PBG, FBG, and Application Processing Fee for various service authorizations 29) Annexure I, DoT Guidelines on UL 20-281/2010-AS-I (Vol VI)

Sl No.	Service	Minimum Equity (Rs. Cr.)	Minimum Net Worth(Rs. Cr.)	Entry Fee(Rs. Cr.)	PBG (Rs. Cr.)	FBG (Rs. Cr.)	Application Processing Fee (Rs. Cr.)
1	UL(All services)	25.000	25.000	15.000	220.000	44.000	0.010
Service Authorisation-wise Requirements
1	Access Service (Telecom Circle /Metro Area)	2.500	2.500	1.000 (0.5 for NE & J&K)	10.000	2.000	0.005
2	NLD (National Area)	2.500	2.500	2.500	2.500	5.000	0.005
3	ILD (National Area)	2.500	2.500	2.500	2.500	5.000	0.005
4	VSAT (National Area)	Nil	Nil	0.300	0.500	0.300	0.005
5	PMRTS (Telecom circle/Metro Area)	Nil	Nil	0.005	0.010	0.010	0.0015
6	GMPCS (National Area)	2.500	2.500	1.000	2.500	1.000	0.005
7	INSAT MSS-R (National Area)	Nil	Nil	0.300	0.020	0.020	0.005
8	ISP-A (National Area)	Nil	Nil	0.300	2.000	0.100	0.005
9	ISP “B” (Telecom circle/Metro Area)	Nil	Nil	0.020	0.100	0.010	0.0015
10	ISP “C” (SSA)	Nil	Nil	0.002	0.005	0.001	0.001
11	Resale IPLC(National Area)	2.500	2.500	1.000	2.000	1.000	0.005

The table below summarizes processing fees, entry fees, Bank Guarantees, Minimum Paid Up Capital, networth requirements etc.for UL-VNO:

Table: Details of Minimum required Equity, Minimum Net Worth, Entry Fee, and Application Processing Fee for various service authorizations

Sl. No.	Service Authorization(s) (VNO)	Minimum Equity (Rs. Cr.)	Minimum Net Worth (Rs. Cr.)	Entry Fee (Rs. Cr.)	Application Processing Fee (Rs. Cr.)	FBG
1	UL (VNO- All Services)	10.0	10.0	7.5	0.01	22.0
2	Access Service (Telecom Circle/ Metro Area)	1.0	1.0	0.5 (0.25 for NE & J&K)	0.005	1.0
3	NLD (National Area)	1.0	1.0	1.25	0.005	2.5
4	ILD (National Area)	1.0	1.0	1.25	0.005	2.5
5	VSAT (National Area)	Nil	Nil	0.15	0.005	0.15
6	PMRTS (Telecom Circle / Metro)	Nil	Nil	0.0035	0.0015	0.005
7	GMPCS (National Area)	1.0	1.0	0.5	0.005	0.5
8	INSAT MSS-R (National Area)	Nil	Nil	0.15	0.005
9	ISP “A” (National Area)	Nil	Nil	0.15	0.005	0.05
10	ISP “B” (Telecom Circle/ Metro Area)	Nil	Nil	0.010	0.0015	0.005
11	ISP “C” (SSA)	Nil	Nil	0.001	0.001	0.0005
12	Resale of IPLC (National Area)	1.25	1.25	0.5	0.005	0.5
13	Access Services Category B (Districts)	-	0.05	0.0165	0.001	0.01

Access to Spectrum

Created in 1952, Wireless Planning and Coordination Wing (WPC) of the Ministry of Communications serves as the National Radio Regulatory Authority of India. It is responsible for frequency spectrum management in India. 30) https://dot.gov.in/spectrum-management/2457?page=10 There are different divisions/ departments which have been assigned distinct functions under the WPC Wing: Licensing and Regulation (LR), New Technology Group (NTG) and Standing Advisory Committee on Radio Frequency Allocation (SACFA). Of the three listed divisions, SACFA is responsible for making recommendations on major frequency allocation issues, formulation of the frequency action plan, making recommendations related to ITU, etc.31)https://dot.gov.in/spectrum-management/2457?page=10

Technical and Administrative Requirements

Licensed

Access Networks

Operator	800MHz	900MHz	1800MHz	2100MHz	2600MHz	3500MHz
XYZcom	None	2×10	2×15	2×10	None	None

PtP Networks

License-Exempt

Access Networks

Frequency	Power Limit	Transmit Power
2.4GHz
2400 – 2483.5 MHz	2.4EIRP
5GHz
5150-5250 MHz	5.1EIRP
5250-5350 MHz	5.2EIRP
5470-5725 MHz	5.4EIRP
5725-5800 MHz	5.8EIRP

PtP Networks

Frequency	Power Limit	Transmit Power
2.4GHz
2400 – 2483.5 MHz	2.4EIRP
5GHz
5150-5250 MHz	5.1EIRP
5250-5350 MHz	5.2EIRP
5470-5725 MHz	5.4EIRP
5725-5800 MHz	5.8EIRP

Secondary Use

Access Networks

PtP Networks

Spectrum Fees / Costs

Application

Annual

Auction

Backhaul

Gender

Universal Service

Cooperatives

Resources / References

Coding examples

This could be used to frame specific questions that should be asked

<callout type=“tip” icon=“true”>This could be for hints / tips / tricks on finding information, what to look for etc.</callout> <callout type=“question” icon=“true”>A question</callout> <callout type=“success” icon=“true”>A good practice example might look like this</callout> <callout type=“danger” icon=“true”>A bad practice to be aware of might look like this</callout>