Tag: The Telecom Regulatory Authority of India

TRAI releases consultation paper on ‘Digital Inclusion in the Era of Emerging Technologies’

Mumbai: The Telecom Regulatory Authority of India (TRAI) has released a consultation Paper on “Digital Inclusion in the Era of Emerging Technologies” on 14 September 2023. The consultation paper has aimed to explore and address the challenges and opportunities presented by the rapid advancement of emerging technologies, with a focus on ensuring inclusivity for all segments of society and industries particularly Micro Small and Medium Enterprises (MSMEs).

In the consultation paper, TRAI has emphasised the need for a robust policy framework and collaborative efforts among stakeholders to ensure participation of individuals in digital economic activities. The authority has also analysed various gaps in digital inclusion present in the country such as the mobile internet usage gap, rural urban internet penetration disparities, gender gaps in internet access, etc. as well as gaps identified from some global indices. Proactively prioritising inclusion can create an ecosystem that benefits every individual, fostering a more equitable and accessible digital economy.

TRAI has also identified various challenges being faced by the Micro, Small and Medium Enterprises (MSME) sector in the country from the adoption of new and emerging digital technology solutions. As the MSME sector contributes significantly towards the nation’s economy, it is imperative that the MSMEs are empowered to contribute more towards the digital economy through new emerging technology solutions, especially the micro-enterprises as the majority of the MSMEs are micro-enterprises.

The consultation paper, for seeking inputs from the stakeholders, has been placed on TRAI’s website (www.trai.gov.in). Written comments on the issues for consultation are invited from the stakeholders by 16 October 2023 and counter comments by 31 October 2023.

September 14, 2023
TRAI releases recommendations on ‘License Fee and Policy Matters of DTH Services’

Mumbai: The Telecom Regulatory Authority of India (TRAI) has issued the recommendations on “License Fee and Policy Matters of DTH Services”. The Ministry of Information and Broadcasting (MIB), vide letter No. 2/33/2021-BP&L dated 2 January 2022, sought recommendations of TRAI under Section (11)(1)(a) of the TRAI Act, 1997.

The reference alluded to the amendments carried out by the Department of Telecommunications (DoT) in Unified License (UL) Agreement. Vide the amendments dated 25.10.2021 and 06.10.2021, DoT has rationalised the definition of Adjusted Gross Revenue (AGR) and Bank Guarantee (BG) quantum respectively under structural reforms.

DTH operation in India is governed by the policy guidelines for obtaining license for providing DTH broadcasting services in India. These guidelines prescribe a License Fee (LF). LF is a non-tax fee levied on a service provider against the privilege of being permitted to carry out a licensed activity. As per the provisions of the guidelines, the DTH operators are required to pay a LF, which is eight per cent of Adjusted Gross Revenue (AGR) on a quarterly basis to MIB.

Bank Guarantee (BG) is a type of financial instrument to ensure that a service provider pay their dues on time and is obligated to fulfil the terms and conditions of the license agreement. The extant DTH guidelines prescribe a BG for an amount of Rs five crore for the first two quarters, and thereafter, for an amount equivalent to LF for two quarters and other dues not otherwise securitised.

Based on the reference, a consultation paper on “License Fee and Policy Matters of DTH Services” was issued by TRAI on 13 January 2023. Written comments and counter-comments on the Consultation Paper were invited from the stakeholders by 27 February 2023 and 13 March 2023 respectively. The Authority received seven comments and one counter-comment from various stakeholders. All these comments and counter-comment are available on TRAT website www.trai.gov.in. An Open House Discussion was also convened on the issues raised in the Consultation Paper on 20 April 2023 through video conferencing.

The salient features of the recommendations are as follows: –

a. Gross Revenue (GR) shall comprise revenue accruing to the licenced entity by way of all operations/ activities and inclusive of all other revenue! income on account of interest, dividend, rent, profit on sale of fixed assets, miscellaneous income etc. without any set-off for related items of expense. The recommendations also provided certain explanations with the definition.

b. Applicable Gross Revenue (ApGR) for arriving at the revenue calculations for license fee should be equal to the total GR of the licensee as reduced by the following items:

i. Revenue from activities under a license/permission issued by DoT;

ii. Reimbursement, if any, from the Government;

iii. List of other income to be excluded from GR to arrive at AGR:

a. Income from Dividend;

b. Income from Interest;

c. Income from sale of fixed assets and securities;

d. Gains from Foreign Exchange rates fluctuations;

e. Income from property rent;

f. Insurance claims;

g. Bad Debts recovered;

h. Excess Provisions written back

*subjects to conditions given in Annexure-IJI of these recommendations

c. Adjusted Gross Revenue (AGR) is calculated by excluding GST paid to the Government from the ApGR, if ApGR had been included as a component of GST.

d. MIB should revise the Form-D (the Statement of Revenue and Licence Fee for DTH Licensees) and adopt the format of Form-D as prescribed in the recommendations. The process for the submission of Form-D should be Page 2 of 4 made end-to-end online with the facility to upload all the related documents in digital mode via a single window system.

e. MIB should develop a robust mechanism for the deduction verification process through a single window portal. The Licensee is required to produce to the Licensor, all such books of accounts and documents required for reconciliation which have a bearing on the verification of revenue for the purpose of calculating License Fee.

f. DTH Licensee should pay an annual license fee equivalent to three per cent of AGR.

g. License Fee for DTH Licensees should be brought down to zero in the next three years. DTH Licensees should not be charged any License Fee after the end of the financial year 2026-2027.

h. The Licensee should submit an Initial Bank Guarantee from any Scheduled Bank to the MIB for an amount of Rs five crore for the first two quarters.

i. Thereafter, the Licensee should submit a Bank Guarantee (covering Financial and Performance Bank Guarantee) from any Scheduled Bank to the MIB for an amount equivalent to the Initial Bank Guarantee (i.e., Rs five crore) or 20 per cent of the estimated sum payable, equivalent to License Fee for two quarters and other dues not otherwise securitized, whichever is higher.

j. Once the license fee becomes zero, the Licensee should submit a Bank Guarantee (Performance Bank Guarantee) for a fixed amount equivalent to the initial Bank Guarantee (i.e Rs five crore) from any Scheduled Bank to the MIB, which should be valid for a minimum of one year and renewed every year to ensure it remains valid for the entire currency of the license agreement.

k. The Licensor should be at the liberty to encash the Bank Guarantee in full or part in the event of violation of any of the license conditions.

l. Electronic Bank Guarantee should be encouraged and permitted for ease of doing business.

m. These recommendations including the definition of Gross Revenue (GR), Applicable Gross Revenue (ApGR), Adjusted Gross Revenue (AGR) and the percentage of AGR to calculate the License Fee for the DTH Liçnse may be made applicable ‘prospectively’.

In the highly competitive television distribution market, urgent measures are required for the DTH sector. The quick implementation of these recommendations will help the sector and enable all-round growth.

August 22, 2023
Trai extends date for stakeholder’s comments on proposed amendments to the telecommunication services interconnection regulations, 2022

Mumbai: The Telecom Regulatory Authority of India (Trai) has extended the date for stakeholders’ comments and counter comments on the Draft Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) (Fourth Amendment) Regulations 2022, released on 9 September.

Last month Trai released a consultation paper on proposed changes to the interconnection regulation 2017. The regulator has amended the regulation to include digital rights management (DRM) system requirements

Also read : TRAI invites stakeholder’s comments on proposed amendments to the interconnection regulation 2017

The last date for receiving written comments from the stakeholders was fixed as 7 October 2022, and counter comments, if any, by 21 October 2022.

In view of this, it has been decided to extend the last date for submission of written comments up to 4 November 2022. Counter comments, if any, may also be submitted by 18 November, 2022. No further requests for extensions will be considered.

The consultation paper (CP) was prepared in response to the report submitted by the Trai committee formed to investigate DRM system issues. The Trai formed a committee in response to numerous comments and suggestions from stakeholders on DRM System issues.

Trai has proposed that IPTV service providers use a closed network to retransmit linear channels to subscriber-owned set-top boxes (STBs). It was expressly stated that IPTV would not include any electronic delivery for receipt and viewing via the internet/OTT. It also stated that IPTV linear services should not be made available over the Internet or public networks.

The regulator also stated that IPTV transmission must be done in multicast mode only, just like cable TV transmission, and that unicast mode is not permitted. STBs with recording capabilities must have a copy protection system in place, and recorded content cannot be transferred to another device.

October 7, 2022
TRAI invites stakeholder’s comments on proposed amendments to the interconnection regulation 2017

Mumbai: The Telecom Regulatory Authority of India (TRAI) has issued a draft consultation paper to bring necessary changes in the Telecommunication (Broadcasting & Cable) services interconnection (Addressable System) Regulation, 2017.

Trai notified the interconnection regulation on 3 March 2017 and further its first amendment was notified on 30 October 2019. The first draft of the interconnection regulation was issued on 27 August 2019 and a proposed amendment was initiated to include Digital Rights Management System requirements (DRM).

What is DRM?

“DRM is a systematic approach to copyright protection for digital media. The purpose of DRM is to prevent unauthorized redistribution of digital media and restrict the ways consumers can copy content they’ve purchased,” Trai stated in a statement.

“DRM products were developed in response to the rapid increase in online piracy of commercially marketed material, which proliferated through the widespread use of peer-to-peer file exchange programs. Typically, DRM is implemented by embedding code that prevents copying, specifies a time period in which the content can be accessed or limits the number of devices the media can be installed on,” it stated.

The authority also stated in a release that during its consultations, it received numerous feedback that the IPTV-based DPOs are switching to DRM technology. “It is necessary that the consultation committee covers the DRM-based networks and provides for enabling provisions for such operators,” Trai stated.

Trai conducted numerous consultation processes and gathered comments and suggestions from various stakeholders on this issue. Realising the concern with DRM, the authority decided to deal with DRM issues in a separate consultation paper. Trai further formed a committee to study DRM system issues. This committee prepared and submitted a report as well as the draft of ‘System Requirement for Digital Right Management (DRM)’ to the authority

Currently, Trai has invited comments and suggestions from stakeholders on the proposed amendment and draft of the Telecommunication (Broadcasting & Cable) services interconnection (Addressable System) Regulation, 2022, which includes the issues related to the DRM system. The stakeholders can submit their comments on the draft regulations by 7 October and counter-comments by 21 October.

September 10, 2022
Trai seeks views on Big Data & AI adoption to improve telecom services in future

Mumbai: The 5G spectrum auction that happened recently is a big step towards the launch of new internet and telecom experience in India. 5G will take India’s telecom services to the next level and bring it at par with countries like China, the US, and South Korea.

A step towards fueling future innovation, the government is now trying to leverage & integrate artificial intelligence (AI) and big data (BD) in the telecommunication sector as both are inherently synergistic. To make this possible, The Telecom Regulatory Authority of India (Trai) has released a consultation paper on “Leveraging AI and BD in the telecommunication sector.” The regulatory body has asked its stakeholders to submit any consent and issues regarding the consultation paper by 16 September & 30 September will be the last date for counter comments.

5G would bring advancement in the media & entertainment industry as the consumers soon be able to access faster internet speed and services. It will enable faster download speeds, lower latency (the response time to transfer computer information), greater flexibility and ability to support more devices.

Through the 5G auction, a total of 51.2 GHz spectrum was sold and 71 percent of total spectrum was put up for sale. It helped the government to earn a record Rs 1.5 lakh crore recently.

Further, the telecom regulator, in its consultation paper, sought opinions on areas where the telecom networks’ present and future capabilities could be used to leverage AI and BD. The paper also presented examples of AI and BD already deployed in telecom networks by the operators in India & other jurisdictions.

Leveraging AI and BD in 6G era

The regulator also looked at developments happening in the 6G and possibilities emerging in the 6G era to leverage AI and BD in the telecom sector as well as other sectors where telecom can play an important and crucial role.

The consultation paper followed the department of telecom’s referral to Trai in June 2019, in which the department requested a recommendation on leveraging AI and BD in a synchronised and effective manner to improve the overall quality of service, spectrum management, network security, and reliability.

The paper stated, “It has been noted that 5G and beyond networks will provide a plethora of data that may be useful for telecom as well as other sectors. Edge computing in the 5G era may offer opportunities to other sectors to train and validate their AI models in the telecom networks.”

“In 5G and beyond, networks may also offer privacy-preserving architectures to adopt and accelerate AI and BD in other sectors,” the paper added.

The paper covered risks associated with the adoption of AI and BD, such as unethical use, bias in data and algorithms, model instability, regulatory and legal noncompliance, and risk mitigation methods and mechanisms. Further, there is a risk of privacy among users, which includes data exploitation, the risk of identification and tracking, and individual profiling.

It also further stated, “If privacy concerns are not addressed and trust is not instilled among the users, then it may become one of the biggest concerns in the adoption of AI.”

The paper’s focus was on privacy concerns and their impact on developing intelligent solutions. The paper identified and presented various solutions and initiatives that may be taken to address the risks and concerns. It also suggested ways to overcome these constraints for faster adoption of AI.

Trai mentioned in its paper that they also noted the latest developments in the field of AI, which may be useful in multi-domain, multi-vendor, and multi-AI model environments.

August 6, 2022
TRAI sticks to earlier position of flat regime rather than a slab-based one for spectrum

NEW DELHI: The Telecom Regulatory Authority of India has reiterated its earlier “consistent position” that the Spectrum usage charge (SUC) must transition from a slab-based regime to a flat ad valorem regime.

The ease of implementation, level playing field, encouragement to bidders to participate in the auction are key rationales for such a position being taken, the regulator has said in its response to a letter received from the Department of Telecom following TRAI’s earlier recommendations of 27 January this year.

TRAI points out that the trading of spectrum is now happening and would gain momentum in due course. It said merger and acquisition would also take place in the sector in the near future going by recent media reports. All this would make the SUC regime more complex and would need an intricate and large system for smooth implementation, it reiterates.

The Cellular Operators Association of India has also supported a flat rate instead of a slab-based one.

At the same time, TRAI has suggested a separate formula for computation of the charges according to the weighted average method, as against the one considered by the Telecom Commission.

“While the optimal solution in the view of the Authority is to move to a flat rate regime, we are constrained to limit ourselves to examine the weighted average solution as suggested by the Attorney General and proposed by DoT,” Trai said in its letter to the Department of Telecommunications (DoT).

The Attorney-General had said “the contract which emerged after the 2010 auction and which is legally binding on both parties, does not permit the Government to change the SUC for BWA unilaterally.” As the Revenue cannot be segregated for each band, there is difficulty in finding a multiplicand for the SUC rate for that band. As an alternate solution, the Attorney General recommended that the Weighted Average of SUC rates across all spectrum bands, including BWA Spectrum obtained in the 2010 auction, should be employed on an operator-wise basis to calculate the SUC in a legally valid manner.

Trai has recommended that the DoT should also include several alternate factors such as last market-determined price and technical efficiency of spectrum bands to arrive at the weighted average for computing the SUC. The telecom watchdog said that if the spectrum quantity in a band was the only weightage for calculating weighted average formula, it may lead to certain shortcomings.

“Part of this shortcoming is based on the fundamental difficulty of using a proxy – any proxy, on which a weighted average computation is based, will not exactly map the revenue earned by each TSP (telecom service provider) from each band,” Trai said in its letter.

The Telecom Commission had cleared a proposal to use weighted average formula for calculating spectrum SUC based on the total spectrum holding, for all bands allocated to telecom operators.

DoT had requested the Authority to provide recommendation on SUC in the context of valuation and reserve price of spectrum in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz spectrum bands.

In January, TRAI had recommended rates for auction of spectrum in the 700 Mhz, 800 Mhz, 900 Mhz, 1800 Mhz, 2100 Mhz, 2300 Mhz and 2500 Mhz bands.

July 13, 2016
TRAI sticks to earlier position of flat regime rather than a slab-based one for spectrum

NEW DELHI: The Telecom Regulatory Authority of India has reiterated its earlier “consistent position” that the Spectrum usage charge (SUC) must transition from a slab-based regime to a flat ad valorem regime.

The ease of implementation, level playing field, encouragement to bidders to participate in the auction are key rationales for such a position being taken, the regulator has said in its response to a letter received from the Department of Telecom following TRAI’s earlier recommendations of 27 January this year.

TRAI points out that the trading of spectrum is now happening and would gain momentum in due course. It said merger and acquisition would also take place in the sector in the near future going by recent media reports. All this would make the SUC regime more complex and would need an intricate and large system for smooth implementation, it reiterates.

The Cellular Operators Association of India has also supported a flat rate instead of a slab-based one.

At the same time, TRAI has suggested a separate formula for computation of the charges according to the weighted average method, as against the one considered by the Telecom Commission.

“While the optimal solution in the view of the Authority is to move to a flat rate regime, we are constrained to limit ourselves to examine the weighted average solution as suggested by the Attorney General and proposed by DoT,” Trai said in its letter to the Department of Telecommunications (DoT).

The Attorney-General had said “the contract which emerged after the 2010 auction and which is legally binding on both parties, does not permit the Government to change the SUC for BWA unilaterally.” As the Revenue cannot be segregated for each band, there is difficulty in finding a multiplicand for the SUC rate for that band. As an alternate solution, the Attorney General recommended that the Weighted Average of SUC rates across all spectrum bands, including BWA Spectrum obtained in the 2010 auction, should be employed on an operator-wise basis to calculate the SUC in a legally valid manner.

Trai has recommended that the DoT should also include several alternate factors such as last market-determined price and technical efficiency of spectrum bands to arrive at the weighted average for computing the SUC. The telecom watchdog said that if the spectrum quantity in a band was the only weightage for calculating weighted average formula, it may lead to certain shortcomings.

“Part of this shortcoming is based on the fundamental difficulty of using a proxy – any proxy, on which a weighted average computation is based, will not exactly map the revenue earned by each TSP (telecom service provider) from each band,” Trai said in its letter.

The Telecom Commission had cleared a proposal to use weighted average formula for calculating spectrum SUC based on the total spectrum holding, for all bands allocated to telecom operators.

DoT had requested the Authority to provide recommendation on SUC in the context of valuation and reserve price of spectrum in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz spectrum bands.

In January, TRAI had recommended rates for auction of spectrum in the 700 Mhz, 800 Mhz, 900 Mhz, 1800 Mhz, 2100 Mhz, 2300 Mhz and 2500 Mhz bands.

July 13, 2016
Trai sets 15 October as date for CAS awareness drive to kick off

MUMBAI: The government’s CAS rollout plan is steadily unfolding. Further to its earlier order specifying standards of quality of service to be observed by the MSOs / cable operators in CAS notified areas, the sector regulator has directed when the public awareness campaign will kick off.

The Telecom Regulatory Authority of India (Trai) today issued a directive that the date for starting public awareness campaign by permitted MSOs in CAS notified areas will be not later than 15 October. The campaign will last for a period of 30 days. The general directive also provides for filing of a compliance report immediately after the start as well as the end of the campaign.

The games are original concepts and are based on popular themes with titles such as Bollywood Squares, a hilarious take on Hollywood Squares, the American TV show. The other titles include Quick Et, a fast cricket game, Star Gaze, a Bollywood celebrity quiz game, Top the Class, a multi user game that can support over 500 users at any given point, adds the release.

Trai had issued a regulation on 23 August specifying standards of quality of service to be observed by the MSOs/ Cable Operators in CAS notified areas of Chennai, Mumbai, Delhi and Kolkata. This regulation had stated that multi system operators permitted to provide cable services in CAS notified areas would be required to conduct a public awareness campaign from a date to be specified by Trai.

The full text of the general directive is available on Trai’s website www.trai.gov.in

September 18, 2006