Service Authorisation under Telecom Act, 2023: DoT Issues Draft Rules

The Department of Telecommunications has released draft rules setting out the terms and conditions for authorisation to provide main telecommunication services.

The draft Telecommunications (Authorisation for Provision of Main Telecommunication Services) Rules, 2025, are proposed to be made in exercise of powers conferred under provisions of the Telecommunications Act, 2023. This Act consolidated and amended the laws related to telecommunication services, including the Indian Telegraph Act, 1885, and the Indian Wireless Telegraphy Act, 1933, into a single legislative framework.

Section 3(1) of the 2023 Act requires any person intending to provide telecommunication services, operate networks, or possess radio equipment to obtain authorisation from the central government, subject to prescribed terms and conditions, including fees or charges.

Telecommunication service authorisations are classified into four broad categories: main telecommunication services, miscellaneous telecommunication services, captive telecommunication services, and broadcasting services.

The new draft rules pertain to main telecommunication services. Under the main service authorisation category, there are four service authorisations: unified service authorisation, access service authorisation, internet service authorisation, and long distance service authorisation. The rules specify the duration of authorisation (20 years, renewable), eligibility criteria, and other requirements. Notably, applicants must be companies incorporated under the Companies Act, 2013, with minimum paid-up equity capital and net worth as specified in Schedule C. If the applicant is an existing licensee, it has to apply for migration and submit proof of such application.

The draft rules also prescribe general conditions (including reporting and disclosure obligations), specific conditions (for types of telecom services), financial conditions (covering, among others, fees, charges, and guarantee requirements), technical and operating conditions (such as network and infrastructure sharing), and security conditions (including lawful interception, caller line identification, and prior vetting of foreign nationals for select positions). In addition, a separate chapter (Chapter 7) lays down specific conditions for the provision of telecom services using satellite systems.