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Tuesday, December 10, 2013

DoT amends unified telecom licence, removes 'forced migration' clause:

Accepting the industry demand, the Department of Telecom has amended the unified telecom licence to do away with the clause which operators claimed mandated 'forced migration' to the new regime. The initial unified licence (new regime) mandated operators to migrate all their telecom licences to the new regime on expiry of one in any of their circles, which the industry had dubbed as 'forced migration'.
The amendment has done away with the clause that read: "However, the telecom service provider has to migrate all of its existing licences." The amended clause now reads: "In order to ensure that the UL (unified licence) regime covers all existing licences, a migration path is offered to the existing licences to migrate to UL regime. Licences of any of the existing Telecom Services Provider shall be eligible to migrate to UL with any number of additional services."
Under the initial version of unified licence, Airtel and Vodafone were the first set of companies which needed to move all their existing permits to new regime by the last quarter of 2014. Airtel's two licences, Delhi and Kolkata, and Vodafone's three licences - Delhi, Kolkata and Mumbai - are due to expire in last quarter of 2014. Post-amendment, the two operators do not need to shift all their existing licences to new regime by last quarter of 2014.
The amended version brings relief to even pureplay internet service providers where most of the players are either mid-size and small companies. Cellular Operators Association of India in a letter to DoT had said that unified licence guidelines require compulsory migration to the new regime under several circumstances.

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