TRAI Recommends Separate Authorization for Access Network Provider

On Thursday, TRAI recommended a different authorization for access network provider, so that the same can offer services on a wholesale basis. The sector regulator said that it wanted to unbundle various layers of authorization with the help of differential licensing.

TRAI Recommends Different Authorization for Access Network Provider

With this move, TRAI aims to create a different license authorization for access network provider. Furthermore, this will allow the sector regulator to scrap a framework for VNOs that are seeking and entering into pacts with network providers.

TRAI said in a statement that it expects that by implementing these recommendations, it can increase network resource sharing, reduce cost and investment and solidify service delivery. Also, TRAI said that this could also catalyze 5G adoption.

TRAI said, "a separate authorisation under unified licence should be created for access network provider (network layer) to provide network services on a wholesale basis". Under this new authorisation, the access network provider would not be permitted to directly provide services to the end customers.

Unified License for Access Network Providers

The scope of the access network provider would be to establish and maintain telecom network, including wireless and wireline infrastructure, and selling the network services (capable of carrying voice and non-voice messages and data) on a wholesale basis to VNOs (service delivery operators) for retailing purpose.

TRAI added, "the access network provider should also be permitted to provide/share its network resources to/with the telecom service providers who are licensees...and vice versa".

Like 'Unified Licensee' with access authorisation, the new category -- access network provider -- should also be permitted to acquire spectrum through auctions, subjected to the prescribed caps, enter into spectrum trading and sharing arrangements with the other players. It should also have access to backhaul spectrum, numbering resources and right to interconnection, Trai said. .

The existing licensing regime of 'Unified License' shall be continued, Trai said adding that but, if a licensee with access service permit wishes to migrate to segregated network layer and service layer regime, it should be allowed to do so.

The network provider should be permitted to take a separate licence under VNO framework for provision of services to the end subscribers. The licence fee and spectrum usage charges applicable for the access network provider authorisation should be same as that of access service under unified licence.

What Access Network Provider Will Do

TRAI said that the combined scope of access network provider and UL-VNO is equal to the scope of a licensee with access service authorisation.

The notification read, "the minimum equity, minimum net worth, entry fee and FBG/PBG requirements for the proposed access network provider authorisation may be arrived at by deducting the amounts prescribed for UL from the amount prescribed for UL-access service authorisation," it said.

Also, TRAI seeks to bring transparency and accountability in the entire process for VNO seeking and entering into an agreement with network provider or Unified Licensee. TRAI said, "to ensure that the terms and conditions offered to different VNOs are fair, transparent, and non-discriminatory, the Unified Licensee shall declare their reference offer (including commercials) on their website.

"The unified licensee shall offer the wholesales services to different VNOs, including VNO-owned/ promoted by itself, in transparent, fair, and non-discriminatory manner," Trai said. Put simply, VNOs are entities authorised to provide telecom services like mobile, landline and internet, but only as retailers for full-fledged telecom operators such as BSNL, MTNL, and others.