TRAI’s Recommendations on ‘Introduction of Digital Connectivity Infrastructure Provider Authorization under Unified License (UL)’

August 9, 2023

The Telecom Regulatory Authority of India (TRAI) recently took a significant step to reshape the landscape of digital connectivity by recommending the creation of new permits for digital infrastructure service providers. This move marks a transformative shift in the way digital infrastructure services will be offered and regulated in India.

Introducing DCIP Permits: Unlocking Opportunities

TRAI’s foremost recommendation revolves around the issuance of permits for entities specializing in digital infrastructure services. These permits, according to TRAI’s vision, will enable registered entities to engage in providing both passive and active infrastructure services to telecom operators. Such services encompass vital components like mobile antennae and base stations, which are essential for robust digital connectivity.

The Name and Scope: Digital Connectivity Infrastructure Provider (DCIP)

To label this new category of permit, TRAI proposes the term ‘Digital Connectivity Infrastructure Provider (DCIP) License.’ This nomenclature encapsulates the essence of these permits—enabling providers to contribute significantly to the digital connectivity ecosystem by offering crucial infrastructure services.

Navigating the Scope: Exclusion of Spectrum

While the recommended permits encompass a wide range of infrastructure services, it’s important to note that they exclude core network elements and spectrum. This strategic limitation ensures that the focus remains on infrastructure provisioning rather than network management.

Fees and Financials: A Balanced Approach

TRAI’s recommendations also outline the financial aspects of obtaining DCIP permits. Entities interested in acquiring these permits are recommended to pay an entry fee of Rs 2 lakh and an application processing fee of Rs 15,000. However, what sets these recommendations apart is TRAI’s stance on license fees. In a departure from the past, TRAI suggests that there should be no license fee applicable to DCIP authorization. This approach could potentially encourage greater participation and innovation in the sector.

Positioning and Potential: Authorization under Unified License

TRAI’s recommendations position the proposed DCIP license not as a standalone entity, but as an authorization under a Unified License framework. This approach ensures that the regulatory framework remains cohesive and streamlined, fostering a favorable environment for growth and collaboration.

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