Page 1 Government of India Ministry of Communications and Information Technology Department of Telecommunications Sanchar Bhawan, 20 Ashoka Road, New Delhi-110 001. No. 20-281/2010-AS-I (Vol VI) Dated, the 08 th Jan 2014 SUB: GUIDELINES FOR GRANT OF UNIFIED LICENSE. National Telecom Policy – 2012 recognizes that the evolution from analog to digital technology has facilitated the conversion of voice, data and video to the digital form. Increasingly, these are now being rendered through single networks bringing about a convergence in networks, services and also devices. Hence, it is now imperative to move towards convergence between various services, networks, platforms, technologies and overcome the existing segregation of licensing, registration and regulatory mechanisms in these areas to enhance affordability, increase access, delivery of multiple services and reduce cost. Further, it envisages to provide secure, reliable, affordable and high quality converged telecommunication services anytime, anywhere for an accelerated inclusive socio-economic development. One of the objectives of the National Telecom Policy-2012 is “Strive to create One Nation - One License” across services and service areas. 2. After considering the recommendations of TRAI for Unified Licenses, the Government has decided to grant Unified License (UL). The basic features of UL are as follows:- (i) The allocation of spectrum is delinked from the licenses and has to be obtained separately as per prescribed procedure. At present, spectrum in 800/900/1800/2100/2300/2500 MHz band is allocated through bidding process. For all other services and usages like Public Mobile Radio Trunking Service (PMRTS), the allocation of spectrum and charges thereof shall be as prescribed by Wireless and Planning and Co-ordination wing of Department of Telecommunications from time to time.
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Government of India
Ministry of Communications and Information Technology
Department of Telecommunications
Sanchar Bhawan, 20 Ashoka Road, New Delhi-110 001.
No. 20-281/2010-AS-I (Vol VI) Dated, the 08th
Jan 2014
SUB: GUIDELINES FOR GRANT OF UNIFIED LICENSE.
National Telecom Policy – 2012 recognizes that the evolution from analog to digital
technology has facilitated the conversion of voice, data and video to the digital form.
Increasingly, these are now being rendered through single networks bringing about a
convergence in networks, services and also devices. Hence, it is now imperative to move
towards convergence between various services, networks, platforms, technologies and
overcome the existing segregation of licensing, registration and regulatory mechanisms in
these areas to enhance affordability, increase access, delivery of multiple services and reduce
cost.
Further, it envisages to provide secure, reliable, affordable and high quality converged
telecommunication services anytime, anywhere for an accelerated inclusive socio-economic
development. One of the objectives of the National Telecom Policy-2012 is “Strive to create
One Nation - One License” across services and service areas.
2. After considering the recommendations of TRAI for Unified Licenses, the Government has
decided to grant Unified License (UL). The basic features of UL are as follows:-
(i) The allocation of spectrum is delinked from the licenses and has to be obtained
separately as per prescribed procedure. At present, spectrum in
800/900/1800/2100/2300/2500 MHz band is allocated through bidding process. For
all other services and usages like Public Mobile Radio Trunking Service (PMRTS),
the allocation of spectrum and charges thereof shall be as prescribed by Wireless and
Planning and Co-ordination wing of Department of Telecommunications from time to
time.
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(ii) Applicant can apply for Unified License along with authorisation for any one or more
services listed below:
a. Unified License (All Services)
b. Access Service (Service Area-wise)as per details at Annexure- IV
c. Internet Service (Category-A with All India jurisdiction)
d. Internet Service ( Category-B with jurisdiction in a Service Area) as per details at
Annexure- IV
e. Internet Service ( Category-C with jurisdiction in a Secondary Switching Area) as
per details at Annexure- III
f. National Long Distance (NLD) Service
g. International Long Distance (ILD) Service
h. Global Mobile Personal Communication by Satellite (GMPCS) Service
i. Public Mobile Radio Trunking Service (PMRTS)Service
j. Very Small Aperture Terminal (VSAT) Closed User Group (CUG) Service
k. INSAT MSS-Reporting (MSS-R) Service.
l. Resale of International Private Leased Circuit (IPLC) Service
Authorisation for Unified License (All Services) would however cover all services
listed at para 2(ii) (b) in all service areas, 2 (ii) (c), 2(ii) (f) to 2(ii) (l) above.
3. The broad guidelines for grant of Unified License are as follows:-
1. General
(i) The applicant must be an Indian company, registered under the Indian
Companies Act’1956.
(ii) The applicant company shall submit the application in duplicate in the
prescribed Application form enclosed at Annexure-II.
(iii) Unified License and Authorisation under UL shall be issued on non-exclusive
basis i.e. without any restriction on the number of entrants for provision of any
service in a Service Area.
(iv) One Company can have only one Unified License. The applicant company can
apply for authorisation for more than one service and service area subject to
fulfillment of all the conditions of entry simultaneously or separately at different
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time. The tenure of such authorisation will run concurrently with the Unified
License.
(v) At the time of applying for Unified License, the applicant has to apply for
authorisation of at least one service listed in para 2(ii) above.
(vi) In case authorisation is required for more than 4 SSAs in a Telecom Circle for
ISP ’C’ category, Category “B’ ISP authorisation for the respective telecom
circle is to be applied for.
(vii) The applicant company shall pay nonrefundable processing fee as prescribed in
Annexure-I along with the application (Two copies) in the form of Demand
Draft/Pay Order from a Schedule Bank payable at New Delhi issued in the name
of Pay & Accounts Officer (Headquarter) DOT.
(viii) The total composite foreign holding shall be governed by Foreign Direct
Investment (FDI) policy of the Government of India as announced by
Department of Industrial Policy and Promotion from time to time.
(ix) The applicant company shall have a minimum paid up equity capital and
networth of the amount indicated in Annexure-I for the respective Service(s)
and Service Area(s) on the date of the application and a certificate to this effect
shall be provided by the registered Company Secretary alongwith application.
Any applicant seeking additional authorisation, subsequent to grant of UL, has
to meet the minimum cumulative networth required on the date of application
for seeking such additional authorisation. The requirement under this license
for the combined minimum Networth and paid-up equity shall be limited to a
maximum of Rs. 25 Crore (Rupees Twenty five crore only), each. The paid-up
equity capital shall be maintained during the currency of the License.
(x) 1‘ Net worth shall be as defined in the Companies Act 2013 and as amended
from time to time. The networth of promoters/equity share holders shall not be
counted for determining the networth of the company. While counting the Net-
worth, the foreign currency shall be converted into Indian Rupees at the
prevalent rate indicated by the Reserve Bank of India as on the date of
Application received.
1 Amended vide DoT Letter No. 20-405/2013 AS-I dated 08.01.2014.
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(xi) Grant of UL to the applicant shall be on the basis of the claims, representations
and submissions made by the applicant as duly certified by the Company
Secretary and authorized Director of the Company. The applicant is therefore
advised to ascertain their eligibility for the license and authorisations applied for
with utmost care and diligence. The application shall be decided, so far as
practicable, within 60 days of the submission of the application complete in all
respect and the applicant company shall be informed accordingly. In case the
applicant is eligible for grant of license or additional authorisation, a Letter of
Intent (LOI) will be issued. The applicant shall be required to deposit non-
refundable Entry Fee and submit the Bank Guarantees / other documents and
sign the license agreement within the specified period as mentioned in the letter
of intent (LOI) failing which the offer of grant of license may be withdrawn at
the expiry of the permitted period. Further, in respect of GMPCS authorisation
issuance of LOI shall be subject to security clearance of the proposal by an
Inter-Ministerial Committee.
(xii) In case the applicant is found to be not eligible for the grant of license for
UNIFIED LICENSE or for additional authorisation under UL, the applicant
shall be informed accordingly.
(xiii) The grant of License would be subject to fulfillment of all requisites under the
application and meeting eligibility conditions by the applicant. Mere filing of
application would not lead to assignment of any priority. If deemed expedient,
Licensor may seek clarification before rejecting the application.
2. Entry Fee:
A one-time non-refundable Entry Fee for authorisation of each Service and service
area shall be payable before signing of license agreement and thereafter for each
additional authorisation (s) as per Annexure-I. The total amount of Entry fee shall
be subject to a maximum of Rs. 15 Crore (Rupees Fifteen crore only).
3. License Fee:
(i) In addition to the Entry Fee, an annual License fee as a percentage of
Adjusted Gross Revenue (AGR) shall be paid by the Licensee service-area
wise for each authorized service separately as per procedure prescribed in
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applicable Chapter of Unified License from the effective date of the
respective authorisation. The License fee is at present 8% of the AGR,
inclusive of USO Levy which is presently 5% of AGR.
Provided that from Second Year of the effective date of respective
authorisation, the License fee shall be subject to a minimum of 10% of the
Entry Fee of the respective authorized service and service area as in
Annexure-I.
(ii) In case the Licensee obtains access spectrum for operation of any authorized
service in a service area, a ‘presumptive AGR’ for that authorized service
and service area shall be arrived at in accordance with the relevant provisions
of the Notice Inviting Application (NIA) document of the auction of
spectrum or conditions of spectrum allotment/LoI as the case may be. The
License Fee based on presumptive AGR shall be applicable from the date of
issue of Letter of Intent earmarking such spectrum or the effective date of the
license/authorisation, whichever is later. The Licensee shall, in such cases,
pay the license fee on the presumptive AGR or actual AGR or the minimum
license fee whichever is higher.
In case, the Licensee obtains spectrum for any service and service area in
different bids, the total presumptive AGR shall be the sum of the
presumptive AGRs calculated on the basis of the respective Bid amounts as
prescribed in the respective NIA or conditions of spectrum allotment/LoI as
the case may be.
(iii) The Licensor reserves the right to modify the above mentioned License fee
any time during the currency of this agreement.
4. Terms of License
The Unified License shall be issued on non-exclusive basis, for a period of 20
years. The Licensor may renew, if deemed expedient, the period of License by 10
years at a time, upon request of the Licensee, if made during the 19th
year of the
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license period, on the terms specified by the Licensor, subject to extant policy. The
decision of the Licensor shall be final and binding in this regard. On renewal, the
Licensee may be required to pay a renewal fee as may be notified by the Licensor.
The prospective telecom service provider can obtain Unified License with
authorisation for any number of offered services in the composite license
document. Any number of the remaining services can also be authorized
subsequently as per the request of licensee. However, the validity of license shall
be 20 years from the effective date of the first authorisation in the Unified License.
This would imply that authorisation for services added at a later date would be
valid only for the remaining period, without any prorata rebate in entry fee etc. and
on fulfillment of the additional eligibility criteria, payment of required fee etc.
5. Equity holding in other companies:
In the event of holding/obtaining Access spectrum, no licensee or its promoter(s)
directly or indirectly shall have any beneficial interest in another licensee
company holding “Access Spectrum” in the same service area.
For the purpose of this clause:
(a) Promoter shall mean legal entity other than Central Government,
financial institutions and scheduled banks, which hold 10% or more equity in
the licensee company.
(b) Beneficial interest shall mean holding of any equity directly or
indirectly including through chain of companies in the licensee company.
(c) Any arrangement contrary to above shall be made consistent with the
above stipulations within a period of one year from the date of grant of UL.
(d) Exception granted in para 1.4 of UAS licensee in respect of basic and
CMTS licenses existing on 11.11.2003 shall end on the expiry of
CMTS/UAS/Basic Service license held by such licensee. They shall comply
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with the above stipulation within a period of one year from the date of
migration to UL.
6. Provision of Telecommunication services using satellite media: In case of
provision of services by the Licensee through the satellite media, the Licensee shall
abide by the prevalent Government orders, directions, guidelines or regulations on the
subject like satellite communication policy, V-SAT policy etc. For use of space
segment and setting up of the Earth Station etc., the Licensee shall directly coordinate
with and obtain clearance from Network Operations and Control Centre (NOCC),
apart from obtaining SACFA clearance. The clearance from other authorities as may
be applicable shall also be obtained by the Licensee.
7. Security Conditions
7.1 The Chief Officer in charge of technical network operations and the
Chief Security Officer/Chief Information Security Officer, and in-charge of GMSC,
MSC, Soft-Switch, Central Database, ILD Gateway, VSAT Hub, INSAT MSS-R
Hub, PMRTS Central/Base Station, GMPCS Gateway, Switches and System
Administrators shall be resident Indian citizen.The positions of the Chairman,