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Fee for bandwidth resale

TRAI favours no ceiling on the number of players in the segment

NEW DELHI: The Telecom Regulatory Authority of India (TRAI) on Friday proposed an entry fee of Rs. 1 crore and a bank guarantee of the same amount for operators to be allowed for buying bulk bandwidth from international long-distance telecom companies and selling it to end users such as banks, IT firms and BPOs.

In a bid to promote competition in resale of bandwidth, TRAI in its recommendations submitted to the Department of Telecommunications has favoured not fixing any ceiling on the number of players in the segment. The proposal will encourage new companies to get into this business and help reduce prices for retail customers such as software exporters, call centres, banks, SMEs, internet service providers and other IT-enabled services.

On the terms and conditions applicable for resellers of bandwidth, TRAI recommended that the applicant company for reseller licence should have a net worth as well as paid-up capital of Rs. 2.50 crore.

The regulator also suggested a licence fee at six per cent of adjusted gross revenues, same as that of international long distance licence.

Further, conditions for remote access should be the same as applicable for ILD licence and the FDI limit should also be consistent with that of the ILD sector at 74 per cent.

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