Regulatory & Policy (Communications) – October 2021

Department of Telecommunications Amends License Agreements

In another major step towards initiating the telecom reforms announced by the Cabinet on September 15, 2021, the Department of Telecommunications (“DoT”) has amended the Unified Access Service License (“UASL”) Agreement, the Unified License (Virtual Network Operator) (“UL (VNO)”) Agreement and the Unified License (“UL”) Agreement to rationalise the interest rate for delayed payment of license fee. Subsequent to the amendment, the rate of interest attracted on the delay in payment of license fee, or any other dues will by 2% above the one-year Marginal Cost of Lending Rate (MCLR) of State Bank of India existing as on the beginning of the financial year. Further the interest rate is to be compounded annually as per the amended clause.

Additionally, the DoT has deleted the Clause 20.8 and Clause 20.10 that relates to the quarterly payment of total dues, in the UASL Agreement and the UL Agreement respectively. The DoT has also deleted the language in Clause 20.8 of the UL (VNO) Agreement pertaining to the financial penalty imposed on the licensee in the event of shortfall in the amount paid as quarterly license fee.

For further details, please contact [email protected]

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