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Trai seeks views on reduction of telecom licence entry fee, clubbing bank guarantees


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NEW DELHI: Telecom regulator Trai on Tuesday floated a consultation paper on reducing entry fee for telecom licences and clubbing of financial and performance bank guarantees.
At present, there is a different entry fee charged for unified telecom licences and licences for virtual network operators.
The department of telecom (DoT) has sought recommendations of the Telecom Regulatory Authority of India (Trai) on reducing the entry fee and making it uniform for all kinds of permits.
The DoT in its letter dated March 3 also asked Trai to give its recommendation on merging of financial bank guarantees and performance bank guarantees and prescribing a single bank guarantee for each permit.
The Notice Inviting Applications (NIA) for the auction of spectrum 2022 does not prescribe any bank guarantee to secure installment payments.
Among various aspects on the subject, Trai has sought views on justification to continue with the practice of the bank guarantee in various licences, practice that should be followed to secure the government dues and performance of service providers, justification for merging the two bank guarantees etc.
As part of the telecom reforms announced in September 2021, the DoT has already reduced bank guarantees by 80 per cent for all licences.
The regulator has set August 23 as the deadline for comment on the paper and September 6 for counter comments.



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