The telecom regulator has floated a discussion paper on the unbundling of different aspects of telecom operations such as infrastructure, network, services and applications through differential licensing.

The consultation paper proposes a system of unbundling wherein there will be an independent network service provider/operator, which will establish the network and sell the services on a wholesale basis to the service delivery operator to retail.

The consultation paper, which asks for opinions of stakeholders on the issue, explains that unbundling of different layers would offer opportunities to share telecom resources and lead to optimum utilisation.

“This will further help in catalysing investment and innovation, cost-cutting, and effective utilisation of infrastructure,” Trai has said in the paper.

The consultation paper comes after the telecom department in May 2019 sought the regulator’s recommendation on the issue of unbundling of different layers.

Trai has set a deadline of September 17 for written comments and October 1 for counter comments on the issue.

“What incentives (lower licence fee, lower spectrum usage charges) could be provided to licensees in the new unbundled licensing regime to encourage the investment,” Trai has asked.

It has sought industry feedback on what should be the scope for network layer licence and service category licences in case the two elements are separated.

The regulator seeks to explore if a network services layer licensee should be permitted to take the service delivery category licence and the restrictions and safeguards that would be imposed to protect the competition and innovation in the service delivery segment.

“Out of various responsibilities and obligations enumerated in the unified licence, what should be the respective responsibilities and obligations of network layer licensees and service delivery category licensees,” said the consultation paper.

Trai had earlier come out with a pre-consultation paper on the issue where it sought inputs from stakeholders on the broad framework for unbundling of licence.

Other issues up for debate include whether certain obligations should be imposed on network layer licensees to provide the network resources in a time-bound, transparent and non-discriminatory manner, as also mechanisms to regulate the access to network services by the service delivery category licensees.

"Whether the existing Unified Licensees should be mandated to migrate to the unbundled licensing regime, or the new regime should be introduced, while keeping the existing regime continued for existing licensees till the validity of their licence, with an option of migration," TRAI asked.

Another question is on whether service delivery category licensees should be permitted to parent with multiple network service layer licensees.

The telecom department in May 2019, had informed that the National Digital Communications Policy (NDCP) under its ''Propel India'' mission, envisages one of the strategies as ''reforming the licensing and regulatory regime to catalyse investments and innovation and promote ease of doing business''.

"Enabling unbundling of different layers (example, infrastructure, network, services, and application layer) through differential licensing is one of the action plans for fulfilling the aforementioned strategy," the TRAI release said.