Mint Explainer: Why Trai wants to cut the entry fees for various licences
- The telecom regulator has proposed reducing the entry fees for a number of licences and rationalising bank guarantees that service providers give the government
New Delhi: The Telecom Regulatory Authority of India has proposed reducing the entry fee for various licenses and services and rationalising bank guarantees that service providers pay to the government. The entry fee is a one-time payment that companies must pay when entering the Indian telecom market, and varies with the type of service they offer. Bank guarantees act as backups or contingent payments that the government can encash in case a company fails to meet the licence conditions. Mint explains the development.