TRAI and DoT face conflict over network access provider licences

TRAI disagreed with DoT's position on both issues. "DoT hasn't given a justification for the aforementioned decision. It is unclear whether DoT has carried out any demand assessment research to determine whether the market has a need for a separate ANP licence," according to TRAI.

The Telecom Regulatory Authority of India (TRAI) reaffirmed its position and retaliated against the government for rejecting its advice to create a new type of licence for network services provided on a wholesale basis.

A separate licence for access network providers (ANPs) might increase investment and improve the service delivery market, according to TRAI. Making an earlier reference to the department of telecommunications(DoT) TRAI stated that "with the implementation of 5G technology at the cusp, there would be different use cases covering practically all the economic sectors." The regulator has suggested using ANPs to enable un-bundling of distinct layers through differential licencing in August 2021.

Because it believed there might not be market need for a separate ANP licence, the DoT declined to accept the request. The department declared that it was looking into a different set TRAI recommendations on broadening the area of infrastructure provider category-1 registration, which has features resembling ANPs.

But TRAI disagreed with DoT's position on both issues. "DoT hasn't given a justification for the aforementioned decision. It is unclear whether DoT has carried out any demand assessment research to determine whether the market has a need for a separate ANP licence", according to TRAI.

According to the regulator, if a distinct category of ANP is established, the network provider might construct a core network, radio access network(RAN), and collaborate with virtual network operators to offer services. "It might provide a situation where everyone benefits, allowing the VNO licensee to sustain the regime by financing RAN. Accordingly, the regulator stated that the implementation of separate licences for access network providers might draw in investment and boost the service delivery sector.

In accordance with TRAI's proposal, the ANP licensee would create and manage a telecom network, both wireless and wireline, and buy spectrum through . However, the ANP licensee won't be able to provide services directly to retail customers, they may share the network infrastructure for service delivery on a wholesale basis with other parties, such as telecom operators or VNOs.

The authority believes that the development of a distinct network-only layer could lead to more network resource sharing, cost savings, and higher investment in the industry. It might also serve as a localized catalyst for the spread of 5G services for business and industrial customers, among others, TRAI mentioned.