NEW DELHI: The Telecom Regulatory Authority of India (TRAI) on Tuesday sought views from stakeholders on issues relating to licensing and regulatory framework for the booming telecom sector, a step that could lead to key policy changes in the mobile segment.

Issuing a consultation paper on "Review of key licence conditions and capping of number of access providers,'' the telecom regulator has sought views on mergers and acquisitions and transfer of licences; equity holding; allowing one operator to use a combination of technology; roll-out obligations and fixing the number of service providers in each telecom circle. TRAI has asked all stakeholders to respond to the issues by June 27. The full text of the consultation paper is available on TRAI's website: www.trai.gov.in.

The move comes after the Department of Telecommunications had sought recommendations of TRAI on the issues of determining the number of access providers (telecom operators) in each service area and review of the terms and conditions in the access provider licence.

"On the mergers and acquisitions issue, main points relate to defining markets, criteria for determining dominance and market power, maximum spectrum holdings for a merged entity, cross technology mergers, and minimum number of access providers in a service area as a result of mergers and acquisitions,'' a TRAI release said.

In the existing licensing regime, mergers and acquisitions as well as transfer of licence are permitted subject to certain conditions.

Stakeholders have also been asked to give their views on the issue of desirability, form and scale of roll-out obligations to be imposed on access service providers, especially keeping in mind the present tele-density figures and the widening gap between the urban and rural tele-density.

Another key issue raised in the consultation paper is about the desirability of limiting the number of access service providers in a service area and determining the optimum number of service providers in a service area. It will also discuss the issue of permitting service providers to offer access services using combination of technology under the same licence.

"The telecom sector with 21.2-crore subscribers by April 2007 has witnessed significant developments in the last few years with the entry of a large number of operators. From the perspective of the cellular telephony market, there is an urgent need to revisit telecom policy and regulatory framework, especially with regard to spectrum policy, investment norms, mergers and acquisitions norms, competition policy, and the licensing regime for a fair predictable, transparent and hassle free functioning,'' the TRAI said.

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