Trai suggests to create separate authorisation for access network provider

Trai on Thursday suggested that a separate authorisation be created for access network provider, to offer network services on a wholesale basis, as the sector regulator spelt out its views on unbundling of various layers through differential licensing.

The recommendations by the Telecom Regulatory Authority of India (Trai) aim to create a separate licence authorisation for access network provider and moot a broad framework for virtual network operators (VNOs) seeking and entering into an pacts with the network providers.

The implementation of these recommendations is expected to result in increased sharing of network resources, reduction of cost, investment, and strengthening of the service delivery, and could also prove to be catalyst in proliferation of 5G services, Trai said in a statement.

"A separate authorisation under unified licence should be created for access network provider (network layer) to provide network services on a wholesale basis," Trai said.

Under this new authorisation, the access network provider would not be permitted to directly provide services to the end customers.

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.

"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," Trai said.

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.

It said the combined scope of access network provider and UL-VNO (access service) is equal to the scope of a licensee with access service authorisation. "The minimum equity, minimum networth, entry fee and FBG/PBG (financial and performance bank guarantee) requirements for the proposed access network provider authorisation may be arrived at by deducting the amounts prescribed for UL (VNO- access service) from the amount prescribed for UL-access service authorisation," it said.

Further, it said that to bring in transparency and accountability in the entire process for VNO seeking and entering into an agreement with network provider or Unified Licensee, a broad framework should be prescribed, including the process for application filing, processing and defined timelines.

"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.