labels: telecom regulatory authority of india, telecom
TRAI caps unified licence fee at Rs180 crore news
Our Corporate Bureau
14 January 2005

New Delhi: The Telecom Regulatory Authority of India (TRAI) has proposed an entry fee of Rs180 crore for an all India unified licence that will enable a new operator to roll out any communication and broadcasting services, except cellular.

An additional charge would be levied on those wanting to provide cellular services, which will be equivalent to what the existing operators paid.

The regulator has, however, suggested that operators with unified access licence will have the option to remain in the existing regime for another two years.

The regulator has also proposed that companies with common promoters having a minimum of 10 per cent equity in each of the subsidiaries to migrate into the new regime as a single entity.

The TRAI has introduced three categories of licencing in the new regime. The first category called 'Licencing through authorisation' will include radio paging services, internet services, mobile radio trunking services and infrastructure services. There will not be any entry fee for this category and the licence fee have also been completely waived off from an average of 6 per cent of the annual revenue, at present.

The second category of services called `Class Licence' include VSAT (very small aperture terminal) and niche operators who will get automatic migration to the new regime with an annual licence fee of 6 per cent of the revenues.

The third and the most significant category called `Unified Licence' will include all telecom services. Operators wanting to take this licence will have to shell out Rs107 crore for offering long distance services and an additional fee, determined by TRAI, for offering access service depending on the circle.

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TRAI caps unified licence fee at Rs180 crore