Mint Explainer: Why Trai wants to cut the entry fees for various licences

livemint.com:

₹15 crore, while a virtual network operator’s entry fee is ₹7.5 crore. While some telecom service providers have called for the entry fee to be abolished, the telecom regulator has suggested a 50% reduction, saying it could cause more companies to enter the market as service providers, enhancing competition. A reasonable entry fee would maintain a balance between deterring non-serious players and ensuring adequate competition.

Trai has pointed out that providers of voice, video and data services have declined from around eight players in each licensed service area to five by 2018 and four at present – Reliance Jio, Bharti Airtel, Vodafone Idea and Bharat Sanchar Nigam Limited. Since reducing the entry fee would lower a company’s start-up cost, it would encourage competition and improve the quality of service. Yes.

In 2005 the Department of Telecommunications reduced the entry fee for the national long distance or NLD from ₹100 crore to ₹2.5 crore and for international long distance or ILD from ₹25 crore to ₹2.5 crore. The government at the time said the reduction would promote growth and enhance competition. Trai has suggested the entry fee for UL for access service should be reduced from ₹1 crore to ₹50 Lakh for each telecom circle or metro area, and from ₹50 lakh to ₹25 lakh for J&K and the North East.

It says the fee for NLD and ILD should be reduced from ₹2.5 crore to ₹50 lakh. The fee for public mobile radio trunking service, a two-way mobile radio service, should be reduced from ₹50,000 to ₹20,000 for each telecom circle. The fee for an ISP "B" licence or internet service provider for metro areas should be reduced from ₹2 lakh to ₹50,000 for each telecom circle and ₹25,000 for J&K and North-East each.