DoT opens applications under new telecom authorisation regime
The Department of Telecom has opened applications for companies seeking authorization to provide telecommunication services under the new Telecom Act, 2023. Existing licensees can also migrate to this new regime. A digital portal is now live for s...
The government has opened a digital portal for companies to file applications. Applicants can submit their applications online through the Telecom eServices portal. This comes after the government on Tuesday notified the rules and regulations for granting authorisation to telecom companies, shifting away from the previous contractual license-based regulation framework.
During the transition phase to the authorisation regime, the Department of Telecom had suspended accepting fresh applications for issuing unified licenses to companies. Following the official release of the rules, applications are now open.
Telecom operators will now have to seek fresh authorisation from the DoT instead of entering into a new license agreement with the government. For existing license holders migrating to the terms and conditions of authorisation, applicants have to pay an entry-fee of either 8% of their adjusted gross revenues or 30% of the applicable one-time entry fee for the specific authorisation category, whichever is higher.
When migrating to the new framework, existing players will have to relinquish an overlapping license or authorisation within the same service area, according to the new rules.
The government has also simplified the bank guarantees required for new applicants in the new rules. Companies will now have to furnish a single bank guarantee, instead of a performance and financial bank guarantee required previously.
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