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:

1. The Indian Telegraph Act, 1885
2. The Indian Wireless Telegraphy Act, 1933
3. Telecom Regulatory Authority of India (TRAI) Act, 1997
4. 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⁾ 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⁾ 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⁾ 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⁾ 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⁾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⁾

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⁾

<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):

1. National Telecommunications Policy, 1994
2. New Telecom Policy, 1999
3. Broadband Policy, 2004
4. National Telecom Policy, 2012
5. 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⁾

• 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⁾

<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⁾ 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⁾ 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⁾

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⁾

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⁾

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⁾

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

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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⁾

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⁾

<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⁾

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⁾

<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⁾ </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⁾ :

1. 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.
2. Authorisation under Unified License comprises for any one or more services listed below:
   1. Unified License (All Services)*
   2. Access Service (Service Area-wise)
   3. Internet Service (Category-A with All India jurisdiction)
   4. Internet Service (Category-B with jurisdiction in a Service Area)
   5. Internet Service (Category-C with jurisdiction in a Secondary Switching Area)
   6. National Long Distance (NLD) Service
   7. International Long Distance (ILD) Service
   8. Global Mobile Personal Communication by Satellite (GMPCS) Service
   9. Public Mobile Radio Trunking Service (PMRTS) Service
   10. Very Small Aperture Terminal (VSAT) Closed User Group (CUG) Service
   11. INSAT MSS-Reporting (MSS-R) Service
   12. 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⁾ 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⁾

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

1. 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.
2. 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⁾

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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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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⁾ 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⁾

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⁾

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

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⁾ 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⁾

National Digital Communication Policy (NDCP) 2018 recognizes spectrum as a key natural resource for public benefit to achieve India’s socio economic goals; it strives to ensure transparency in allocation and optimise availability and utilisation of spectrum. ³²⁾ Accordingly, a National Frequency Action Plan (NFAP) 2018 has been formulated which aims to provide a roadmap for the availability and allocation of wireless spectrum to facilitate the development and deployment of next generation wireless services in the country. ³³⁾

Providing a broad regulatory framework, NFAP 2018 identifies which frequency bands are available for different radiocommunication services including cellular mobile service, Wi-fi, sound and television broadcasting, radionavigation for aircrafts and ships, defence and security communications, disaster relief and emergency communications, satellite communications and satellite-broadcasting, and amateur service. ³⁴⁾ Simply put, allocation of radio-frequency spectrum to different radiocommunication services is the central theme of NFAP 2018. ³⁵⁾ Notably, NFAP-18 doesn’t attempt to list the various applications (uses) of the individual radiocommunication services that are currently authorised or may be authorised in future in India, thus providing a stable yet flexible regulatory framework. ³⁶⁾

<callout type=“tip” icon=“true”> The latest frequency allocation table of India can be found in National Frequency Allocation Table (NFAP) 2018. Follow link. </callout>

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>