Mukesh Ambani led Reliance Jio Infocomm has received TRAI s approval of its application to get a unified service license, which will now allow the operator to expand its services to even voice-calling services pan-India. So far the operator owned airwaves for broadband wireless access (BWA) in India. According to an ET report, Reliance Jio has been asked to pay a one time fee of Rs 1,673 crore for the unified license, which is required by an operator to provide multiple service across circles in India. Also Read - Reliance Industries to buy majority stake in Den Networks, Hathway Cable; reports increase in Q2 net profit
Apart from the aforementioned entry fee, the company has also been asked to pay Rs 440 crore as performance bank guarantee and additionally, Rs 22 crore as financial bank guarantee, which makes brings the total to Rs 2,135 crore.
We know that Reliance Jio is betting big on VoLTE on 4G and has for long been testing its 4G network in India. Despite being late to the telecom party, it has a huge advantage over incumbent players considering that is the only company to have a pan-India license to provide 4G services with its pan-India block of 20MHz spectrum in the 2.3 GHz band. Airtel is the other big 4G player in India.
This approval comes after the Telecom Regulatory of India recently issued guidelines for unified licenses for operators. These guidelines replaced the existing system of United Access Service License (UASL), and have been made mandatory for all telecom companies. It will basically allow a telecom operator to offer any service under one permit instead of holding different licenses for different services.
Sistema Shyam became the first operator to get a unified license last week.