According to the National Telecom Policy of 2012, data, voice and video conversion to the digital format has been made unchallenging through the shift from analog to digital technology. These are increasingly being delivered via single networks, which has resulted in a convergence in devices, services and networks. Therefore, in order to improve affordability, expand access, deliver multiple services, and lower costs, it is now essential to move toward convergence between various services, networks, platforms, and technologies and to overcome the current segregation of licensing, registration, and regulatory mechanisms in these areas. Basis the recommendation of TRAI for Unified Licenses, it was concluded by the government to grant Unified License (UL).

Basic Features of Unified License (UL)

1. Eligibility: Only Indian Companies registered under the Companies Act, 2013
2. License Types: Applicants can choose from various authorizations, such as Access Service, Internet Service (Category A/B/C), National Long Distance (NLD), International Long Distance (ILD), and more.
3. Unified Framework for All Services:
   • A single license permits the holder to offer multiple telecom services (like access services, internet services, national/international long distance, etc.).
   • Promotes convergence of services and technologies.
4. Delinked Spectrum Allocation (as already discussed):
   • Spectrum is not bundled with the license.
   • Must be acquired separately, usually through auctions for commercial use.
5. Nationwide or Service Area-wise Licensing:
   • Licenses can be granted for the entire country or individual service areas (like states or telecom circles).
6. Validity and Renewal:
   • The UL is generally valid for 20 years, extendable by 10 years.
   • Subject to terms and conditions set by Department of Telecommunications (DoT).
7. Revenue Sharing Model:
   • Operators must pay license fees and spectrum usage charges as a percentage of Adjusted Gross Revenue (AGR).
   • Ensures a sustainable revenue stream for the government.
8. Service-specific Authorizations:
   • Within the Unified License, the operator must take authorization for each service they intend to offer (e.g., ISP, NLD, ILD).
   • Enables reusability and flexibility.
9. No Restriction on Number of Licensees:
   • In line with market liberalization, there’s no cap on the number of players (subject to spectrum availability and competition norms).
10. Transfer/Merger Provisions:
    • Provisions exist for mergers, acquisitions, and license transfer, subject to Department of Telecommunication (DoT) approval and regulatory conditions.

Conclusion

The Unified License (UL) policy launched by the Department of Telecommunications (DoT) is a crucial move towards upgrading and streamlining the telecom regulatory regime in India. By providing support for the convergence of services, promoting technological neutrality, and enhancing transparent mechanisms of spectrum auctioning, the UL has genuinely facilitated the workings of telecom service providers. The consistent updates reflect the government’s dynamic approach—consistently changing licensing requirements to keep pace with technological developments, foreign investment rules, and changing needs of the digital economy. The addition of Virtual Network Operators (VNOs), simplification of charges, and support for investment also highlight its relevance in enhancing telecom availability, particularly in rural and disadvantaged areas. Summarily, the Unified License and its amendments bring a flexible, growth-oriented, and investor-centric regime that drives India’s vision of a knowledge economy and digitally empowered society.

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Manisha.Bagaria