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Scope and service categories
The Main Services Rules are limited to 'main telecommunication services' which are classified separately from captive, miscellaneous, and broadcasting services. The 2 (two) categories of entities provided under the Main Services Rules are: (a) Network Service Operators ("NSOs"), who may establish and operate their own networks; and (b) Virtual Network Operators ("VNOs"), who must rely on NSOs for access. While VNOs may engage with multiple NSOs for wireline services, they are restricted to a single NSO for wireless services.
Service areas
The Main Services Rules clearly define authorisation boundaries for the following category of main telecommunication service: (a) national service area for unified services; (b) telecom circle or metro service area for access services; (c) national service area, telecom circle, or metro service area for internet services; and (d) national service area for long-distance services.
Eligibility, migration and tenure
Under the Main Services Rules, applicants must be companies incorporated in India, satisfy prescribed equity and net worth thresholds, comply with foreign direct investment ("FDI") norms, and exclude prohibited investors. Existing licensees can choose to migrate to equivalent authorisations under the yet to be issued Telecom (Migration from License to Authorisation) Rules, 2025 ("Migration Rules"), alongwith their dues and liabilities carried forward. Authorisations, granted for a period of 20 (twenty) years, are renewable on compliance.
Application process and financial obligations
As per the Main Services Rules, applications should be made through an online portal, accompanied by non-refundable processing fees and financial guarantees which could be in the form of bank guarantee, insurance bond, or non-interest-bearing security deposit with the Central Government ("Guarantee"). The authorisations are non-exclusive, allowing multiple operators in the same service area. Financial obligations include an annual fee of 8% of Adjusted Gross Revenue ("AGR") and spectrum usage charges where applicable. The cross-holding restrictions are also imposed to curb anti-competitive practices, except in NSO–VNO relationships.
Technical and operational conditions
Under the Main Services Rules, authorised entities must comply with the electromagnetic field exposure limits, fulfil right of way responsibilities, adhere to national numbering and frequency plans, and provide access to emergency services. The quality of service benchmarks will also apply to the entities.
Security obligations and special provisions
Under the Main Services Rules, extensive security conditions are prescribed, including lawful interception and monitoring, data localisation, restrictions on remote access, and mandatory procurement from 'Trusted Sources' and use of 'Trusted Products'. A Chief Telecommunication Security Officer, who must be a resident Indian citizen, is required.
A dedicated chapter covers satellite communication networks, mandating Indian gateway locations, domestic traffic routing, and registration of user terminals.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
