The Department of Telecommunication (DOT) recently simplified the procedure and other aspects related to the National Long Distance Service. They did
The Department of Telecommunication (DOT) recently simplified the procedure and other aspects related to the National Long Distance Service. They did so with the view to make it easier for new telecom stakeholders to help with the growth of the telecommunication sector in India. This article takes a look into the simplification of this procedure.
Few can play the role of a National Long Distance Operator. In addition to providing long-distance voice, calling and data transmission services, an NLD operator is also responsible for supplying telecom resources like bandwidth to telecommunication companies.
Needless to say, they are India’s telecom pillars. Realizing this, the government of India introduced new directives that made it easier for new stakeholders to obtain an National Long Distance License in India.
Let us discuss that simplification.
Reduction of entry fee
National Long Distance is a telecommunication service that must be available in abundance. It is because that’s the only way the rising number of telecom companies can provide internet access to their subscribers. Therefore, with a new to promote NLD service, the Department of Telecommunication has reduced the entry fee. Earlier, it used to be INR 100 crore, a figure that made most think twice about getting the license. However, now the entry fee is INR 2.5 Crore.
Removal of obligations
Currently, the Department of Telecommunication has a mandate for the National Long Distance Operators that states that every NLD operator must have a point of presence in a Long distance charging area. However, with the introduction of ‘simplification’ of these licensing terms, the operators have to don’t worry about these rollout obligations.
Reduction of net worth and paid-up capital requirement
The current net worth requirement to provide NLD service is INR 2500 Crore. The Paid-up capital requirement stands equally gigantic at INR 250 Crore. These huge figures have played a role in demotivating entrepreneurs to attempt to become telecom companies in India. However, as more NLDs are the need of the hour, the Department of Telecommunication has reduced both of these requirements to a mere INR 2.5 Crore.
Access to the subscriber list
Citing security reasons, the government of India does not let NLD access subscribers directly for the provision of leased circuits/closed user groups. However, now that the government inclines to promote the BPO and KPO industry, it has decided that an NLD service provider would have access to the subscribers directly for the provision of leased circuits and closed groups. It means that NLD operators will now be able to provide last-mile connectivity. International Long Distance License
Reduction in the license fee
Currently, every NLD operator has to pay an annual license fee that’s calculated by taking 15% of the Adjusted Gross revenue. It has caused upheaval in the telecom arena and thankfully, the government has responded. Now, the license fee will be equated by taking 6% of the Adjusted gross revenue.
Every move that the government has made in recent times about the telecom sector has been to promote telecommunication services in India. And from what we have been witnessing, NLD operators and ILD operators would gain the most from it. Read More: Trademark Investigation
How far will the incentives and reductions help in the promotion of India’s telecom domain remains to be seen? For now, all we can do is hope for more incentives in the future.
The department of Telecommunication has simplified National Long Distance License and thus has introduced many incentives and reductions.