Trai proposes over 50% cut in entry fee for licences, rejects telcos call to scrap BGs

New Delhi: The Telecom Regulatory Authority of India has proposed slashing entry fees for various licences by over 50%, a move aimed at promoting entry of new players in the sector. The authority, however, has proposed to continue with the practice of submitting bank guarantees (BG) for various licences, rejecting telcos’ calls to scrap them.

All the three private telecom operators wanted the BGs scrapped, so that more working capital could be freed for expansion of mobile broadband networks. The telcos had highlighted to Trai that BGs should be discontinued as they don’t serve any purpose in securing government revenues but add imposing costs on them.