The Government of India, under the Telecommunications Act, 2023, has proposed a new set of draft rules titled Telecommunications (Authorisation for Telecommunication Network) Rules, 2025. These draft rules aim to set a modern framework for how telecommunication networks shall be authorised, managed, and regulated. The changes seek to simplify compliance, bring clarity, and align regulation with new technologies.

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What Are the Draft Telecommunications (Authorisation for Telecommunication Network) Rules, 2025?

The Telecommunications (Authorisation for Telecommunication Network) Rules are a proposed legal framework that would be made under the powers granted by sections 3 and 56 of the Telecommunications Act, 2023. They seek to define how telecom network authorisations will be granted, who is eligible, what categories exist, how long they last, and how renewals will work.

These rules do not override existing licenses or permissions issued earlier under the Indian Telegraph Act, 1885 or the Indian Wireless Telegraphy Act, 1933. Those older authorisations continue to remain valid until their term ends or they are migrated per the new law.

The rules are currently in draft form, and the Central Government will consider objections or suggestions from affected persons.

Categories of Authorization

Under rule 2 of the draft, six categories of telecommunication network authorisations are defined. These allow specialization depending on the role of the entity. The six are:

1. Infrastructure Provider (IP) Authorisation for entities that deploy physical network infrastructure (e.g. towers, fibre).
2. Digital Connectivity Infrastructure Provider (DCIP) Authorisation for providers of digital connectivity infrastructure (e.g. backhaul, ducts, fibre corridors).
3. Internet Exchange Point (IXP) Provider Authorisation for entities operating exchange points that route internet traffic among networks.
4. Satellite Earth Station Gateway (SESG) Provider Authorisation for operators of gateways connecting terrestrial networks to satellites.
5. Cloud-hosted Telecommunication Network (CTN) Provider Authorisation for network functions hosted in the cloud (software, virtual networks).
6. Mobile Number Portability (MNP) Provider Authorisation for entities facilitating mobile number portability services.

Guarantee Requirements of the Telecom Network Authorization

These draft rules impose guarantee (security) obligations on authorised entities to ensure compliance. These are:

1. The guarantee may take the form of (a) a bank guarantee from a scheduled bank or public financial institution, (b) an insurance surety bond from a recognised insurer (per IRDAI), or (c) a non-interest-bearing security deposit with the Central Government.
2. The guarantee acts as a security for performance, including payment of authorisation fees, penalties, compliance with directions, and any dues.
3. The guarantee is subject to review each year. A valid guarantee must be maintained throughout the authorisation period or until all dues are cleared.
4. Initially, the guarantee must match an amount in “Schedule A.” In subsequent years, it must equal the higher of ₹10 lakhs or 20% of the combined estimated dues (two quarters’ authorisation fees + unsecured dues).
5. The authorised entity must extend the guarantee validity at least one month before expiry, proactively, without waiting for reminders.
6. If the guarantee lapses or is not maintained, the government may encash, claim, or appropriate it without prior notice. No compensation or interest is payable.
7. If encashed, the guarantee must be restored within 15 days. A one-time 10-day extension may be allowed on written request with reasons.
8. The guarantee is released only after authorisation is revoked, surrendered, or expires, and all dues are cleared. Unpaid dues can be recovered from the guarantee without further notice.

Eligibility Criteria for Grant of an Authorization

The draft rules list several criteria to ensure that only suitable entities gain authorisation. The key points are:

1. Applicant must be a company incorporated under the Companies Act (i.e. a corporate entity, not an individual).
2. For SESG authorisation, the applicant must also be (a) a space segment provider authorised by the Department of Space / IN-SPACe, or (b) a subsidiary of such, or (c) have an agreement with a space segment provider to operate gateways.
3. For MNP authorisation, (a) the applicant or its material shareholder must not hold equity in any authorised entity having access or long-distance service, and (b) must not have SEH (substantial equity shareholding) in another MNP provider. (Relaxation may be allowed in exceptional cases.)
4. FDI (direct or indirect) must comply with Indian laws and policies applicable when applying.
5. No investment or control from prohibited investors (as defined in law or policy).
6. If the applicant previously held a telecom license (terminated, surrendered, or expired), it must pay all outstanding dues (including interest) before applying.
7. If the applicant had earlier authorisations under the Act or older laws and has pending dues (from surrender, revocation, or expiry), those must be cleared before reapplying.
8. An existing operator holding a telecom service license or authorisation in an area cannot apply for a network authorisation whose scope covers the same area fully.

Applicability for Obtaining an Authorization

The rules also specify procedural and situational applicability in which authorisation must or may be obtained:

1. Portal Application: Entities (except MNP) must apply via a government portal, in the prescribed form, with required documents.
2. MNP via Bidding: MNP provider authorisation is not direct, it is awarded through a bidding process. The call for applications will specify the process and documents.
3. Migration of Existing Licenses: An existing licensee must, along with the application, show proof of migration of its existing licenses to the corresponding authorisation under new rules (except in some exempted cases).
4. Processing Fee: Every application must include a non-refundable processing fee, as defined in Schedule A.
5. Simultaneous Applications: An applicant may apply for multiple authorisations in different geographical or functional areas at the same time.

Grant of Authorization for Telecommunication Network

The draft describes the procedural steps and conditions under which authorisation is granted:

1. Examination & Clarifications: After applying, the government may review and ask for clarifications or additional documents to fully assess eligibility.
2. Letter of Intent (LoI): If the application passes eligibility, the government issues a LoI via the portal (except for IP or IXP providers, who may be granted authorisation directly without LoI).
3. Compliance with LoI: The applicant must fulfill conditions in the LoI, pay the entry fee, submit documents, and meet other terms within the specified timeline.
4. Expiry of LoI: If terms are not met by the deadline, LoI lapses and the application is rejected. A one-time extension up to 30 days may be granted if requested before expiry.
5. Granting Authorisation & Number: After satisfying LoI conditions (or in direct cases), the portal generates a unique authorisation number and issues the authorisation in the format prescribed in Schedule B.
6. MNP Specific Conditions: For MNP, in addition to satisfying eligibility and paying the entry fee, the applicant must also submit an initial guarantee valid for at least one year.
7. One Authorisation per Zone: Only one MNP provider authorisation may be granted per zone. The government may change zones or call for more authorisations later.
8. Reliance on Applicant’s Submissions: Authorities process based on submitted documents. If any submission is later found false or misleading, the authorisation may be revoked or penalised per rule 18.
9. Timely Decision: The government aims to decide within 60 days after all documents/clarifications are furnished. If rejected (other than LoI lapse), reasons must be provided in writing.
10. Restriction on Duplicate Authorisations: An entity cannot hold more than one authorisation of the same type in the same area. If a new authorisation comes via merger or acquisition, the older one is subsumed, but all obligations and dues carry forward.
11. Transition for Existing LoI Holders: Applicants who already hold a LoI under the older licensing regime may migrate to the new authorisation, fees already paid will be adjusted, but any shortfall in the entry fee under the new rules must be paid.

Duration of Authorization

The duration of authorization under the Telecommunications (Authorisation for Telecommunication Network) Rules, 2025, varies by category. For most telecom authorizations, the initial validity period is 20 years from the effective date unless revoked or curtailed earlier. However, for Mobile Number Portability (MNP) providers, the authorization remains valid for 10 years. The government holds the right to curtail or revoke authorization before the expiry period in cases of noncompliance, violation of license conditions, or breach of regulatory terms. The Department of Telecommunications also governs renewal procedures and conditions based on performance and compliance records.

Renewal of Authorization

The rules set steps and conditions for renewal:

1. Application Timeline: Authorised entity must apply for renewal at least 12 months before expiry, via the portal, paying a renewal processing fee. Late applications may be accepted up to 4 months before expiry, subject to payment of late fees.
2. Renewal Decision & Term: If approved, renewal is granted for:

• 20 years for all categories except MNP, or
• 10 years for MNP authorisation. 

The government may impose new terms or conditions as per laws and policies at renewal time.
3. Failure / Rejection:

• If renewal is rejected (with reasons in writing), or
• If no renewal application is filed in time, then the authorisation expires at the end of its current term.

4. Compliance at Renewal: Renewal is contingent on compliance with current laws, policies, obligations, dues, and performance.

Conclusion

The draft Telecommunications (Authorisation for Telecommunication Network) Rules, 2025 propose a modern and comprehensive structure for telecom network authorisation in India. They provide clear categories, eligibility norms, guarantee obligations, application and grant processes, validity tenure, and renewal rules. If finalized, these rules can bring stability, transparency, and ease to network infrastructure providers, cloud-based telecom network entities, satellite gateway operators, and MNP providers. The stakeholders should carefully review these draft rules and submit feedback in the public consultation period. That ensures the final rules reflect ground realities, technological trends, and the needs of all participants.