Telecom Commission endorses DoT recommendations on unified licence, defers decision on infra companies

The Telecom Commission today broadly endorsed the recommendations of the Department of Telecommunications (DoT) on a unified licensing regime for telecom and broadcasting offerings that will enable end users to get a host of services such as mobile, landline, DTH, cable TV from a single company without the entity necessarily owning the full infrastructure.

However, it deferred its decision on DoT's recommendations on telecom infrastructure companies.
 
In its report on a unified licensing regime under the National Telecom Policy 2012, a DoT committee had proposed a new kind of licence - Unified Licence (Service Delivery) - that can be used by its holder to use infrastructure of other companies to deliver all types of communication services to its subscribers.
 
The panel in its report had also proposed another licence which will be 'network services' that will own the network infrastructure that can be used by services delivery licence holders.
 
The panel report, according to sources, had said the end user would be able to "interact with only one operator for all his needs such as fixed telephone, mobile phone and broadband access through fixed line, wireless broadband access, cable television, satellite television, IPTV for residential users... Further a single billing would be feasible".
 
The report had further said that the new service delivery licences would also support business models like MVNO (mobile virtual network operator) and reseller options where any company in agreement with network services will be able to provide services to end consumers.
 
The panel had also proposed permitting UL (network services) holder to also provide telecom services. For infrastructure companies (IP-1), commonly known as telecom tower firms, the panel had recommended their inclusion in the licensing regime but allowing them to function with 100 per cent foreign direct Investment as against the current permissible limit of 74 per cent in the telecom sector.
 
According to sources, the panel report said: "The IP-1 players may be brought under unified licensing regime. However, exemption in respect of FDI may be sought from the DIPP (Department of Industrial Policy and Promotion). IP-1 players should be allowed to continue as at present."
 
With inputs from PTI
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