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Telcos in India can shut services without surrendering license

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The Telecom Regulatory Authority of India (Trai) Monday also recommended a 60-day notice to the regulator and the telecom department (DoT), by a mobile phone operator closing services through shift in any other technology or by selling all of its airwaves by trading.

License, telcos, surrender, India

It also suggested a tweak in spectrum trading rules to clearly outline timelines for the process as well as changing the definition of mobile number portability (MNP) to exclude changing from one technology to another.

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Trai further recommended that DoT can reject requests to close down a service, ‘only when warranted’, in the interest of public or national security or in the event of national emergency or war.

The regulator said that currently there are several exit options available for telcos including trading or outright sale of airwaves, on non-renewal of spectrum in a circle by choice or market forces, or by a change of technology or if a sharing agreement comes to end.

Experts noted that some telcos had renewed airwaves through an auction but were allocated different frequencies which needed technological adjustments leading to some service disruptions. In another case, a telco didn’t renew its airwaves in some circles and hence had to ask its customers to move to another technology which it was offering or port out to another carrier.

The regulator has also suggested tweaking the spectrum trading guidelines to include timelines for DoT to raise any objections and demand dues, on the grounds that the intimation alone does not guarantee that the deal will actually take place at the end of 45 days from intimating authorities. DoT could now be given 15 days to flag objections, instead of 14 days or two weeks before, and trading parties get the same time to revert, within the 45 day period.

Trai has also suggested introducing a 21-day period for DoT to raise objections in case a carrier is selling all its spectrum in all bands, while the joint-intimation period to inform DoT and Trai remains same at 60 days, and 30 days for informing consumers.

The regulator said that the move would allow a carrier to give advance notice to authorities before shutting services.

By Baishakhi Dutta

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