TRAI mulls city-based licences

The Telecom Regulatory Authority of India (TRAI), in order to unite cable, telecom and Internet services by making them accessible through a...

The Telecom Regulatory Authority of India (TRAI), in order to unite cable, telecom and Internet services by making them accessible through a single cable by next year, is considering city-based licensing and cutting of import duty on equipment.

A 12-member TRAI Committee on Broadband and Telephony over Cable TV Network, headed by secretary Rajendra Singh, met last week and discussed area-based licensing to allow telecom operators to team up with cable operators. ‘‘Licence will be either for operating in a city, or just a district in case of a big city like Delhi,’’ said a member.

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The existing unified licence fee—Rs 108 crore—is too high to be feasible in the new set-up. Besides, the fee and other norms should be such that it promotes tie-ups with cable network operators. The panel is discussing ways to upgrade the existing one-way cable system into an interactive system to support voice and data exchange.

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The panel also took up the need for rationalising customs duty. Telecom equipment import attracts zero duty, but high duty is charged on equipment and connective devices used in cable network systems.

‘‘The telecom import list has 126 exempted items. It’ll be expanded to include cable network equipment.’’ said sources. The panel, which will again meet on October 21, also discussed funding by FIIs, and making technical courses available at ITIs to ensure trained manpower for the new system.