Trai asks for opinions on reducing telecommunications license entry fees and hype bank guarantees


Telecoms regulator Trai presented a consultation paper on Tuesday on lowering entry fees for telecoms licenses and bludgeoning financial and performance bank guarantees. Currently, a different entry fee is charged for unified telecommunications licenses and virtual network operator licenses.

The Department of Telecommunications (DoT) has sought recommendations from the Indian Telecommunications Regulatory Authority (Trai) on reducing entry fees and making them uniform across all types of permits.

The DoT, in its letter dated March 3, also asked Trai to give its recommendation on merging financial bank guarantees and performance bank guarantees and to prescribe a single bank guarantee for each permit.

The Notice of Invitation to Bid (NIA) for the 2022 Spectrum Auction does not prescribe any bank guarantee to secure staged payments.

Among various aspects on the subject, Trai sought opinions on the justification for continuing the practice of bank guarantee in various licenses, the practice to be followed to guarantee government fees and the performance of service providers, the justification for the merger of the two bank guarantees, etc. .

As part of telecommunications reforms announced in September 2021, the DoT has already reduced bank guarantees by 80% for all licenses.

The regulator has set August 23 as the deadline for comments on the document and September 6 for counter-comments.

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