Tech News Desk – Telecom Regulatory Authority of India (TRAI) has released its recommendations on rationalizing entry fees and bank guarantees. In this context, the Department of Telecommunications (DoT) has asked TRAI to rationalize entry fees and bank guarantees for various licenses in the telecom industry. TRAI will give a lump sum amount to any company in the telecom sector to start its service. Must pay, which is called entry fee. Entry fees are generally not refunded. Bank guarantee is a type of financial instrument that protects the interests of the government by ensuring that the licensee pays its dues on time and fulfills its obligations as per the terms and conditions stipulated in the license agreement.
TRAI took this step
TRAI released a consultation paper on rationalization of entry fees and bank guarantees on July 26, 2022. Written comments and counter-comments were invited from stakeholders on the consultation paper by 23 August and 6 September 2022 respectively. On the request of industry associations/stakeholders, the last date for submission of written comments and counter-comments is 6 September and 20 September 2022 respectively. Was extended till. The Authority has received 20 comments and 1 counter-comment from various stakeholders. An Open House discussion was also convened through video conferencing on 9 December 2022 on the issues raised in the consultation paper.
TRAI is preparing to reduce the entry fee
In the environment of rapid technological change in the telecom sector, TRAI has made recommendations to the Government for reducing entry fees in various licensing authorities and merger of banks for orderly development of the telecom sector and ease of doing business. It is expected that the reduction in entry fee will lead to entry of new service providers in the market, increase investment and increase competition in the telecom sector.
The merger of bank guarantees will boost ease of doing business and licensees will be able to invest in the sector thereby ushering in growth in the sector. The authority has also recommended not charging any entry fee at the time of renewal of license. Such a move will reduce the financial burden on existing and new entrants and will be particularly beneficial for UL (VNO) licensees.