The Telecom Regulatory Authority of India, which had earlier recommended that a unified licensing regime be introduced in the country with an entry fee of Rs 107 crore (Rs 1.07 billion), on Monday proposed that this fee be lowered to a mere Rs 5 crore (Rs 50 million).
In a bid to promote competition between the telecom and cable industries in view of the converging scenario, Trai also recommended that both sectors be permitted a similar foreign direct investment cap and equal duty structure for all equipment, in addition to the cable industry being permitted institutional funding.
It called for a single regulator for both the telecommunications and broadcast sectors and added that the Communications Convergence Bill, 2001, must be revived as a first step towards a converged regulatory regime.
Issuing its recommendations on "issues relating to convergence and competition in broadcasting and telecommunications," the regulator demanded that the government implement its proposals on a unified licensing regime in the country at the earliest.
The proposals also call for greater flexibility in spectrum allocation to take full advantage of new services and new technologies for existing services that may evolve with time.
The regulator's recommendations for unified licensing have been pending with the department of telecommunications for over 18 months.
Justifying the move for reduction in the entry fee, Trai said, "There should be reduction in the entry fee to reflect the changes made in the entry fee for national and international long-distance licence. Thus, this entry fee should come down to Rs 5 crore (Rs 50 million) as against Rs 107 crore (Rs 1.07 billion) recommended earlier and this should be further reduced to Rs 30 lakh (Rs 3 million) after five years as already recommended."
The regulator also suggested several changes to the convergence Bill such as keeping content regulation out of the purview of the converged regulator and division of powers among the government, TDSAT and Trai broadly corresponding to what is the present position.
Highlighting the importance of its recommendations, Trai said convergence of technologies was rapidly blurring the boundaries between telecommunications and broadcasting.
"It is necessary for the legal and regulatory framework to adapt to this convergence and actively promote such convergence. This would also help in facilitating competition," it added.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
© 2025