Telcos disagree on authorization of Digital connectivity infra providers

Jio stated that easing the regulatory burden on various organisations will be more beneficial than subjecting them to the UL pattern.

Digital connectivity infrastructure providers (DCIPs) may now receive separate authorization under the unified licence(UL), according to a recent consultation document from the Telecom Regulatory Authority of India(TRAI).

Reliance Jio and Bharti Airtel, two telecom giants, have responded by opposing the proposition, citing worries that the new authorization could cause difficulties in the management of vital network components and investments in new technology.

Nonetheless, Vodafone Idea on the other hand stated in favour of the proposal, saying that it will encourage infrastructure sharing in a just, transparent, and non-discriminatory method.

The goal behind the February release of TRAI's paper on the establishment of DCIP authorization under Unified Licence was to introduce a frame setup that would encourage the promotion of organisations that specialise in building digital infrastructure that any service can use.

The Infrastructure Provider-1 (IP-1) enrollment with Department of Telecom now governs providers of digital communication. Nevertheless, IP-1's purview is restricted to offering passive assets ( passive asset is any asset that produces, or is held for the production of passive income.) on lease, rent or sale basis.

According to Airtel, there is no defense for adding a new category under UL for DCIPs because there would be no advantage from doing so. Jio agreed and stated that instead, easing the regulatory burden on various organisations will be more beneficial than subjecting them to the UL pattern.

On the other side, Vodafone Idea is of the opinion that infrastructure sharing can only be accomplished when independent businesses build digital infrastructure without being in direct opposition to service providers. They claimed that encouraging the development of infrastructure by independent businesses through DCIP authorization under the UL will strengthen the telecom infrastructure and lower the cost of financing for service providers.

It must be noted that Vodafone Idea is the sole telecom provider that hasn’t placed any orders for 5G service equipment and has had trouble paying its vendors’ bills. Vi is still to launch its 5G services whereas the other two major telcos, Jio and Airtel are spreading their 5G services nationwide rapidly and have already introduced their services in over 500 cities.