No refund of telecom licence fee as TRAI recommends `exit policy’

The Telecom Regulatory Authority of India (TRAI) has refused to recommend any special consideration to telecom service providers wanting to surrender their licences.

In its recommendations on the ''exit policy for various telecom licences'' TRAI said, at present, there is no provision for refund of the initial payment of Rs1,658 crore collected at the time of granting of licence and this will continue.

TRAI felt there was no need for a separate exit policy for all types of licences and the entry fee paid by the licensees would continue to be non-refundable as per their licence terms and conditions.

Holders of various licences are, at present, allowed to surrender their licences by giving at least 60 days notice (30 days in case of ISP licence) and this will continue to be applicable.

In such cases, service providers should also notify all their customers individually of the withdrawal of the service 30 days in advance.

After start of service, licensees should, however, maintain quality of service even during the notice period and any deterioration in service quality will be treated as material breach of licence terms and will risk termination of licence. The performance bank guarantee will be encashed and the amount adjusted towards damages.