Digital Connectivity Infrastructure Provider Registration

The Telecom Regulatory Authority of India (TRAI) has issued a notification on August 8th, 2023. It is for recommending a new license category within a Unified License (UL) called ‘Digital Connectivity Infrastructure Provider’. Its motive is to boost creation of active/ passive digital connectivity infrastructure to cut network infrastructure rollout costs.

This recommendation of TRAI telecom is in line with National Digital Communications Policy (NDPC-2018). It fulfills the important role of digital infrastructure in driving economic growth and improving the quality of telecom services. Below is a complete analysis of the notification on how you can obtain a DCIP license.

What is DCIP and How Does it Work?

DCIP full form is Digital Connectivity Infrastructure Provider. The DCIPs can provide both passive infrastructure and create active networks (excluding core elements). So it results in increased common shareable and network resources, reduction of cost, and attract investment.

The telecom India regulator has recommended a new category of license under UL to boost creation of active/passive digital connectivity infrastructure. So, the government made provisions to ensure that Digital Connectivity Infrastructure Provider (DCIP) permit-holders can buy radio equipment, but without any assignment of spectrum. 

Along with this, the National Digital Communications Policy–2018 has put much emphasis on “Digital infrastructure and services are increasingly emerging as key enablers and critical determinants of a country’s growth and well-being”. Under ‘Connect India’ mission, NDCP advocates Creating Robust Digital Communications Infrastructure. To promote Broadband for All as a tool for socio-economic development, while ensuring service quality and environmental sustainability”.

The presence of neutral third-party entities that can create passive as well as certain network layer active infrastructure. It can help in increased sharing and can bring down overall infrastructure cost and strengthen services delivery.

All Services Types

The registered entities will be able to provide both active infrastructures and passive infrastructure as a service to telecom operators except core network elements and spectrum. There are four categories of licensable activities:

1. Network Facilities Providers - the fundamental building block of the convergence model upon which network, applications and content services are provided.

2. Network Services Providers - basic connectivity services and bandwidth Provider.

3. Applications Service Providers - voice services, data services, content-based services, electronic commerce, and other transmission services providers.

4. Content Applications Service Providers - subset of applications service providers including traditional broadcast services and the latest services such as online publishing and information services.

Scope of Work Under DCIP

The DCIP authorization holder are allow to do the following activities:

• They should have permit to own, establish, maintain, and work apparatus, appliance, instrument, equipment, and system.
• They should utilize types of equipment and products that meet TEC standards, wherever made mandatory by the Licensor from time to time. In the absence of mandatory TEC standards, the DCIP licensee should have permit to utilize only those equipment and products which meet the relevant standards. And these standards must be set by International standardization bodies.
• They should be bound by the terms and conditions of DCIP license as well as instructions issued by the Licensor. And by such orders/directions/regulations of TRAI issued as per the provisions of the TRAI Act, 1997, as amended from time to time.

Eligibility Required for DCIP License

The following conditions may be followed by DCIPs: - 

1. While providing the resources to other entities, they shall satisfy themselves that such entity is eligible to obtain that resource. Otherwise it is treated as a violation of the terms and conditions of this authorization. 
2. DCIPs can install DCI in such a way that the Hirer of their infrastructure is able to fulfill the Licensing conditions. It can include technical, operating, Quality of Service (QoS) and security conditions.
   
3. DCIPs needs to ensure that they enter into a formal written agreement with eligible service providers. Before providing access to DCI items, equipment, and systems to them on lease/rent/sell basis.
   
4. On request provide to the licensor details of all network elements, its location, cable routes and capacity along with GIS mapping. 
   
5. In security sensitive areas installation of any equipment or execution of a project shall be taken up only as per Licensor’s policy/guidelines.
   
6. DCI or installation thereof, should not become a safety or health hazard and is not in contravention of any statute, rule, regulation, or public policy.
   
7. DCIPs is not to provide infrastructure to those who are not authorized. The licensee under the Indian Telegraph Act or whose license is revoked/suspended or not in operation.

Financial Conditions: 

• The total amount of Entry fee shall be as specified in Annexure-II. 
• DCIPs will not be required to pay any License Fee.
• The DCIP Licensee is required to submit to the licensor an annual statement of Revenues earned by it through provision of its DCI items, equipment, and systems on lease/sale/rent/access right basis in a format prescribed at Annexure-A to this authorization. Neither any license fee will be imposed on the revenues detailed under this statement, nor will these revenue form part of gross revenues under any other authorization

Documents Required for DCIP Registration

The following are the documents that must be submitted by new DCIPs to obtain a license:

1. Payment of Processing Fee (Demand Draft/ Pay Order).
2. Copy of “Certificate of Incorporation” issued by Registrar of Companies duly certified by the Director/Company Secretary/Statutory Auditors. 
3. Equity details of the Company indicating Indian Equity and Foreign Equity (Direct + Indirect both) clearly. 
4. The nationality of promoters/partners/equity holders should be clearly stated such as Resident Indian Citizen/ NRI/ Foreign National.
5. If there is a foreign promoter/partner/equity holder, certified copy of agreement between Indian Company and Foreign partner.
6. If FDI (Foreign equity­: Direct + Indirect) in the Indian Company exceeds 49%, a copy of FIPB approval is to be submitted. 
7. Resolution of Board of Director/other proof that the person signing the application is authorized signatory. Such a resolution should be signed with a stamp by a Director but not by an authorized signatory himself. 
8. Signature of the authorized signatory should be attested by a Director of the company or company Secretary. 
9. Copy of Memorandum & Article of Association (MoA) duly certified by the Company Secretary/ Director of the Company with first and last page duly stamped and each page duly initiated. It can clarify that under which clause of MoA, carrying IP­I business is covered. 
10. List of Board of Directors along with their nationality (It should be clearly indicated whether they are Resident Indian Citizen/NRI/Foreign Nationals).

Regulatory Compliances of DCIP

Some critical compliances of UL are Security Conditions, Data Privacy, Confidentiality, Technical Standard, Quality of Service norms, location of network elements, facilitating inspection, and testing of Installations, should also be applicable to DCIP. 

So, this is to ensure a level playing field for all interest groups. By imposing QoS requirements on DCIP, it will incentivize the availability of a better network for end users. The other aspects of DCIP are as follows:

• For providing DCI items, equipment, systems to other entities, you must be eligible to obtain these items. Otherwise the act will be treated as a violation of terms and conditions of the authorization.
• The DCIP licensees can provide DCI items, equipment, and systems on lease/rent/sale basis to entities with valid licenses under the Telegraph Act 1885 and those notified by the Government for this purpose.
• For the overall framework to work efficiently and for QoS standards to be upheld, is the fact that DCIPs do not sell more than designed overall carrying capacities.

Process of Converting IP-1 to DCIP

The current digital infrastructure sector players who are currently registered as IP-Is, have to take the new license and migrate their assets under this license to DCIP. The process of migration of IP-1s to DCIP is easy. The IP-1 registered entities can migrate to the UL even under the current regime, as there is no prohibition on it. 

Some of the UL license holders who are offering active assets for sharing under different authorizations also have to take DCIP authorization. So, they need to offer all infrastructure services under this Authorization as it will not attract any license fees. As stakeholders state that they don't face any issue in the migration of IP-1s to DCIP. The Authority has not made any specific recommendations in the notification.

How Registrationwala Can Help?

As per the information given above, the entry of many new players in the field of digital infrastructure will help in creation of more and more DCI. On the entry barriers it kept as low as possible. Now the registered IP-1 license holders can migrate to DCIP or the new applicant can also apply for the DCIP license.

We at Registrationwala assist you in the complete process of migration or to file new applications. Reach out to us and obtain a Digital Connectivity Infrastructure Provider license.

FAQs About DCIP License

Q. Who are the Digital Connectivity Infrastructure Providers?

The Digital Connectivity Infrastructure Provider are those who will create both active as well as passive infrastructure. The active infrastructure includes antennas, switches, servers, databases, radio access nodes, and transmission equipment. On the other hand, passive infrastructure includes sites, towers, poles, ducts, electric power, and air conditioning.

Q. What is Digital Connectivity Infrastructure Provider license fees?

The Digital Connectivity Infrastructure Provider will get authorisation under the Unified License and does not require any license fees, but the entry fee of Rs. 2 lakh and processing fees of Rs. 15 thousand will be charged.

Q. What is the minimum eligibility for getting a Unified License in India?

For DCIP is it important to enter into agreement for designed DCI capacity with only eligible service provider(s), that their equipment, and systems can support. Otherwise, it may affect the technical and QoS benchmark parameters. Also, for provisioning of services of some eligible service providers at the cost of others.

Q. What is telecom regulatory authority?

The TRAI full form is Telecom Regulatory Authority of India and it ensures that interest of consumers get protected in telecom businesses. And similarly create conditions for the growth of telecommunication, broadcasting and cable services. It plays a vital role in the emerging global information technology. 

Q. What is the difference between TRAI and DoT?

The TRAI telecom is an independent regulatory authority of India and provides recommendations on significant aspects of telecom regulation. DoT full form is Department of Telecommunication networks and it is under the Ministry of Communications and not obligated to seek advice from TRAI. The TRAI is a dispute settlement body, DoT creates policies for the telecom sector.