Draft Telecommunications (Authorisation for Provision of Main Telecommunication Services) Rules, 2025

REGD. No. D. L.-33004/99 The Gazette of India EXTRAORDINARY PART II—Section 3—Sub-section (i) PUBLISHED BY AUTHORITY No. 562] NEW DELHI, SATURDAY, SEPTEMBER 6, 2025/BHADRA 15, 1947 CG-DL-E-08092025-266001 MINISTRY OF COMMUNICATIONS (Department of Telecommunications) NOTIFICATION New Delhi, the 5th September, 2025 G.S.R. 606(E).––The following draft rules, which the Central Government proposes to make in exercise of the powers conferred by clause (a) of sub section (1) of section 3 read with clause (a) of sub-section (2) of section 56 of the Telecommunications Act, 2023 (44 of 2023) are hereby published for the information of all persons likely to be affected thereby and notice is hereby given that the said draft rules shall be taken into consideration after the expiry of a period of thirty days from the date on which copies of this notification as published in the Official Gazette, are made available to the public, Objections or suggestions, if any, may be addressed to the Joint Secretary (Telecom), Department of Telecommunications, Ministry of Communications, Government of India, Sanchar Bhawan, 20, Ashoka Road, New Delhi- 110001, The objections or suggestions which may be received from any person with respect to the said draft rules before the expiry of the aforesaid period shall be taken into consideration by the Central Government. CHAPTER 1: PRELIMINARY 1. Short title and commencement (1) These rules may be called the Telecommunications (Authorisation for Provision of Main Telecommunication Services) Rules, 2025. (2) They shall come into force on the date of their publication in the Official Gazette. (3) These rules shall not override the terms and conditions of actions taken under the Indian Telegraph Act, 1885 (13 of 1885), including issuance of licenses, registrations or permissions, by whatever name called, undertaken pursuant to the Indian Telegraph Act, 1885 (13 of 1885), which shall continue in accordance with sub-section (6) of section 3 of the Act. 2. Definitions (1) In these rules, unless the context otherwise requires, (a) “access service” means the telecommunication service provided by an authorised entity to users for conveyance of voice or non-voice messages through wireline or wireless telecommunication network, and the words “wireline access service” and “wireless access service” shall be construed accordingly; (b) “access spectrum” means the spectrum assigned to an authorised entity for conveyance of voice or non-voice messages between user terminal (UT) and base station; (c) “Act” means the Telecommunications Act, 2023 (44 of 2023); (d) “authorisation fee” means a fee payable by an authorised entity at rates and intervals for the duration of the authorisation as specified in these rules; (e) “authorised agency” means: (i) for interception of messages, the authorised agency as defined under Telecommunications (Procedures and Safeguards for Lawful Interception of Messages) Rules, 2024; and (ii) for any other purpose, the agency designated by the Central Government; (f) “base station” means a fixed radio transmitter and receiver station, which provides a link between the user terminal and core telecommunication network; (g) “bearer service” means a telecommunication service that allows transmission of message between network interfaces, that provide users the capacity required to transmit messages between certain access points referred to as user network interfaces and the phrase “bearer telecommunication traffic” shall be construed accordingly; (h) “broadcasting services” means the dissemination of any programme(s) through terrestrial or satellite communication medium or a combination of both, intended to be received by users either directly or indirectly, and all its grammatical variations and cognate expressions shall be construed accordingly; (i) “cable landing station” or “CLS” means the station where fibers of the international or domestic submarine cable gets terminated and it houses the Submarine Line Terminating Equipment (SLTE) and Power Feeding Equipment (PFE); (j) “cable landing station-point of presence” or “CLS-PoP” means a type of CLS, where some fiber pairs of the submarine cable extended from the CLS are terminated and it houses SLTE; (k) “call” means a connection established by means of telecommunication that enables voice communication; (l) “calling line identification” or “CLI” means the identity of the calling or originating user in terms of the telecommunication identifier assigned or any other identification as may be specified by the Central Government from time to time; (m) “captive non-public network” or “CNPN” means a terrestrial wireless telecommunication network established for captive use within a specified geographical area, which cannot be used for providing commercial or public telecommunication services to users. (n) “captive telecommunication services” means captive telecommunication services as identified and authorised under the Telecommunications (Authorisation For Provision of Captive Telecommunication Services) Rules, 2025; (o) “Chief Telecommunication Security Officer” means the Chief Telecommunication Security Officer appointed under rule 6 of the Telecommunications (Telecom Cyber Security) Rules, 2024; (p) “cloud-hosted telecommunication network” or “CTN” shall have the same meaning as provided in the Telecommunications (Authorisation for Telecommunication Network) Rules, 2025. (q) “cloud-hosted telecommunication network (CTN) provider” shall have the same meaning as provided in the Telecommunications (Authorisation for Telecommunication Network) Rules, 2025. (r) “Companies Act” means the Companies Act, 1956 or the Companies Act, 2013, as the case may be; (s) “control” includes the right to appoint majority of the directors or to control the management or policy decisions exercisable by a person or persons acting individually or in concert, directly or indirectly, including by virtue of their shareholding or management rights or shareholders agreements or voting agreements or in any other manner: Provided that a director or officer of an authorised entity shall not be considered to have control over an authorised entity merely by virtue of holding such position; (t) “core telecommunication network” means a system or series of systems of telecommunication equipment that is responsible for routing and controlling flow of telecommunication traffic among different parts of the telecommunication network and handles a range of essential functions including connectivity, routing, mobility management, authentication, authorisation, user management, policy management, management of exposure of the telecommunication network and servicing of Application Program Interfaces (APIs). (u) “critical telecommunication infrastructure” means any telecommunication network, or part thereof, notified under sub-section (3) of section 22 of the Act; (v) “Customer Application Form” or “CAF” means the form as may be specified by the Central Government, for recording the user information for the purpose of providing telecommunication services; (w) “domain name” means the address of a computer, organization, or entity on a TCP/IP network such as Internet; (x) “domestic leased circuit” means a leased circuit within the boundaries of the national service area; (y) “earth station in motion” or “ESIM” means a Fixed Satellite Service (FSS) user terminal of satellite system, installed on a moving platform like ship, aircraft or land vehicle, while in motion or on pause and connected with satellite, essentially providing access to telecommunication service; (z) “effective date” means the date as specified in the authorisation as being the effective date of the authorisation; (aa) “emergency response services” means telecommunication services to address emergencies of any kind, including major accidents, natural or man-made disasters and incidents involving toxic or radio-active materials, or any other emergency declared by the Central Government or State Government from time to time; (bb) “emergency services” means the relevant public, police, fire, ambulance, coast guard or any other services so declared by the Central Government; (cc) “entry fee” means non-refundable amount of fee to be paid for grant of authorisation to provide telecommunication services in a service area of authorisation; (dd) “exclusive economic zone” means the area identified under section 7 of the Territorial Waters, Continental Shelf, Exclusive Economic Zone And Other Maritime Zones Act, 1976; (ee) “force majeure event” means any cause or event, other than the unavailability of funds, which causes non performance or delay in performance by the authorised entity claiming to be affected by such event, which are: (i) beyond the reasonable control of, and could not have been anticipated or foreseeable by such entity, and not brought about at the instance of such entity, or (ii) which, if anticipated or foreseeable, could not have been avoided by such entity. Illustrative list of “force majeure events” includes natural phenomena or calamities or any act of God , earthquakes, typhoons, floods, fires, explosions, wars declared or undeclared, hostilities, invasions, blockades, acts of public enemy, sabotage, riots, strikes, insurrection, civil disturbances, Act of State or direction from Statutory Authority, quarantine restriction, strikes and lockouts (as are not limited to the establishments and facilities of the authorised entity). (ff) “foreign direct investment” or “FDI” means foreign direct investment as defined under paragraph (r) of rule 2 of the Foreign Exchange Management (Non-debt Instrument) Rules, 2019; (gg) “form” means a form specified by the Central Government from time to time; (hh) “global mobile personal communications by satellite (GMPCS) system” means any satellite system which is fixed or mobile, broad-band or narrow-band, global or regional, geo-stationary or non-geo-stationery, existing or planned providing telecommunication services directly to end users from a single or constellation of satellites, and the phrase ‘GMPCS network’ and ‘GMPCS service’ shall be construed accordingly; (ii) “home network” means the telecommunication network established by an authorised entity in its service area of authorisation; (jj) “IN-SPACe” means the Indian National Space Promotion and Authorisation Center, which is the autonomous agency within the Department of Space that regulates space sector activities of non-government entities; (kk) “inter-circle traffic” means the telecommunication traffic originating in one Telecom Circle or Metro service area and terminating in another Telecom Circle or Metro service area; (ll) “interconnection” means the commercial and technical arrangements under which authorised entities or licensees, as the case may be, connect their telecommunication equipment, telecommunication network and telecommunication services to enable their users to have access to users, telecommunication services and telecommunication networks of other authorised entities or licensees; (mm) “international long distance (ILD) network” means a type of telecommunications network for interconnecting with telecommunication networks of foreign carriers; (nn) “international long distance (ILD) service” means a type of telecommunication service provisioned over the ILD network; (oo) “international private leased circuit (IPLC)” means an international leased circuit connecting a user in India and a user outside India; (pp) “internet” is a global system that: (a)is logically linked together by a globally unique address, based on Internet Protocol (IP) or its subsequent enhancements or upgradations; and (b) is able to support communications using the Transmission Control Protocol/Internet Protocol (TCP/IP) suite or its subsequent enhancements/upgradations, and all other IP compatible protocols; (qq) “internet exchange point” or “IXP” means a telecommunication equipment at a physical location containing ethernet switches where multiple telecommunication networks connect to exchange internet traffic; (rr) “internet exchange point (IXP) service” means a telecommunication service provided using IXP; (ss) “internet leased line” or “ILL” means any dedicated link, on wireline or wireless media, from a port on Internet node to user premises and having un-contended capacity; (tt) “Internet of Things” or “IoT” means M2M communications over the internet; (uu) “internet service” is a type of telecommunication service accessing the internet; (vv) “internet telephony” means transfer of message(s) including voice signal(s) through internet and internet telephony network shall be construed accordingly; (ww) “intra circle traffic” means the telecommunication traffic originating and terminating within boundaries of the same Telecom Circle or Metro service area; (xx) “leased circuit” means a private dedicated circuit that links two or more locations using physical connections, transmission bandwidth, circuit switched technology, or packet switched technology; (yy) “letter of intent” or “LOI” means the letter issued under sub-rule (2) of rule 10 of these rules; (zz) “license” means a license, registration, or permission, by whatever name called, granted under the Indian Telegraph Act, 1885 for provision of telecommunication services or telecommunication network and the word “licensee” shall be construed accordingly; (aaa) “long distance call” means a call terminating in an area other than the local area in which it is originated; (bbb) “long distance network” is a telecommunication network of transmission and switching telecommunication equipment connected in a predetermined fashion to provide switched bearer interconnection between different local networks; (ccc) “Low Power Wide Area Network” or “LPWAN” is a type of wide area network which provides wireless connectivity to low-power devices over large distances that is suited for M2M communication; (ddd) “Machine to Machine (M2M) communication” is a type of telecommunication between two or more devices that do not necessarily need any direct human intervention; (eee) “Machine to Machine (M2M) service” means a type of telecommunication service using Machine to Machine (M2M) communication; (fff) “main telecommunication services” means the telecommunication services listed in sub-rule (2) of rule 4 of these rules; (ggg) “merger rules” means the Telecommunications (Regulation of Restructuring or Acquisition of Authorised Entities) Rules, 2025; (hhh) “migration rules” means the Telecommunications (Migration from License to Authorisation) Rules, 2025; (iii) “miscellaneous telecommunication services” means the telecommunication services that are identified under and grant of authorisation for which is governed by the Telecommunications (Authorisation for Provision of Miscellaneous Telecommunication Services) Rules, 2025; (jjj) “mobile number portability” or “MNP” means the facility which allows users to retain their existing telecommunication identifier when they switch from one authorised entity or licensee providing access service to another; (kkk) “national long distance (NLD) network” is a type of telecommunication network which carries bearer telecommunication traffic between two telecom circle or metro service areas or provides domestic bandwidth or leased circuit within the boundaries of the national service area; (lll) “national long distance (NLD) service” means a type of telecommunication service provisioned over the NLD network; (mmm) “network service operator” or “NSO” means an authorised entity or licensee providing telecommunication service by establishing, operating, maintaining, or expanding telecommunication network for the relevant telecommunication service; (nnn) “networth” shall have the meaning given to the term in sub-section (57) of section 2 of the Companies Act, 2013; (ooo) “Non-terrestrial networks (NTN)” means telecommunication networks or its segments that use either Uncrewed Aircraft Systems (UAS), including High Altitude Platforms (HAPs), or satellites in different constellations, to carry a transmission equipment relay node or a base station; (ppp) “parent NSO” in relation to a VNO means the NSO with which such VNO seeks to enter into, or has entered into, an agreement for providing its telecommunication services; (qqq) “peering” means a process by which two or more internet networks connect and exchange traffic, either directly or through IXP, and without having to involve a third internet network; (rrr) “point of interconnection” or “POI” has the same meaning as defined in the interconnection regulations under the TRAI Act; (sss)“point of presence” or “POP” means a system of telecommunication networks of appropriate capacity established by the authorised entity to provide authorised telecommunication services; (ttt) “portal” means the portal notified by the Central Government under sub-rule (3) of rule 2 of these rules; (uuu) “prohibited investor” means a person who falls within any of the following categories: (i) a person debarred from accessing the capital market by SEBI; (ii) a person as may be determined by the Central Government when it considers it necessary or expedient so to do in the interest of national security; (iii) a person whose authorisation or license, as the case may be, was cancelled on account of default in compliance with the terms and conditions of its authorisation or license; (iv) a person who was in control of the person specified under clause (iii) at the time of default or of the cancellation; and (v) a person or class of persons as may be identified by the Central Government, from time to time that are prohibited from holding any equity shares in, or controlling, directly or indirectly, an authorised entity or licensee, as the case may be; (vvv) “public land mobile network” or “PLMN” means a land based public mobile network; (www) “public switched telephone network” or “PSTN” means a fixed public telephone network providing a two-way switched telecommunication service; (xxx) “public utility service” means a telecommunication service, as declared by the Central Government from time to time, for use of general public by access through telecommunication network; (yyy) “roaming” means a telecommunication service that allows mobile terminal users to continue to use the telecommunication services subscribed in its home network, while travelling outside the geographical coverage area of the home network, by means of using a visited network; (zzz) “satellite system” or “satellite network” means a telecommunication network comprising satellites, system control centers, gateways, together with associated telecommunication networks and terminals that enable direct communication channels between satellites and terminals, as well as connections to land networks through feeder links; (aaaa) “service area” means the geographical area for which the authorisation for provision of telecommunication service is granted, which can be of two types: (i) National Service Area which refers to the territory of India, territorial waters of India, and the Continental Shelf and Exclusive Economic Zone of India, in accordance with the Section 55 of the Act; and (ii) Telecom circle or metro service area which refers to service areas listed in Schedule B to these rules; (bbbb) “SIM” means Subscriber Identity Module (SIM), by whatever name called and it includes embedded SIM (e-SIM), Integrated SIM (iSIM), soft SIM, or any other equivalent SIM, available in any form factor, used for securely storing a unique telecommunication identifier and its related authentication keys to identify and authenticate user on the telecommunication network of the authorised entity; (cccc) “stub-cable” means pre-laid, open-ended submarine cable placed from a cable landing station into sea waters; (dddd) “Subscriber Data Record” or “SDR” means a comprehensive repository of user information maintained by each authorised entity, in the format as may be specified by the Central Government; (eeee) “tariff” shall have the same meaning as provided in the Telecommunication Tariff Orders issued under the TRAI Act; (ffff) “Telecom cyber security” shall have the same meaning as specified in the Telecommunications (Telecom Cyber Security) Rules, 2024; (gggg) “TRAI” means Telecom Regulatory Authority of India constituted under the TRAI Act; (hhhh) “TRAI Act” means Telecom Regulatory Authority of India Act, 1997 (24 of 1997); (iiii)“updating of telecommunication services” means the process of replacing or upgrading an existing SIM or telecommunication services, or changing the details of the user, without any change to the unique telecommunication identifier assigned to such user; (jjjj)“user terminal (UT)” or “user equipment (UE)” means a type of telecommunication equipment used by a user to avail telecommunication service provided by an authorised entity; (kkkk) “virtual network operator” or “VNO” means an authorised entity or licensee providing telecommunication service by entering into mutual agreement with a parent NSO which may provide for: (a) connecting its telecommunication equipment or system to the telecommunication network of such NSO, or (b) using the telecommunication network of such NSO; and (llll)“VSAT” means Very Small Aperture Terminal. (2) Words and expressions used in these rules and not defined herein but defined in the Act shall have the meanings respectively assigned to them in the Act. (3) The Central Government may establish and notify one or more portals for the purpose of implementation of rules under the Act. 3. Applicability These rules shall apply to any person, intending to provide or providing the telecommunication services specified in sub-rule (2) of rule 4, within the service area of authorisation. CHAPTER 2: AUTHORISATION FOR MAIN TELECOMMUNICATION SERVICES 4. Categories of authorisations (1) Telecommunication service authorisations are classified into the following four broad categories: (a) main telecommunication services, (b) miscellaneous telecommunication services, (c) captive telecommunication service, and (d) broadcasting services. (2) Main telecommunication services authorisation shall comprise of the following sub-categories: (a) unified service authorisation, which shall comprise the telecommunication services as detailed in Part A (Unified Service Authorisation) of Chapter 8 of these rules; (b) access service authorisation, which shall comprise the telecommunication services as detailed in Part B (Access Service Authorisation) of Chapter 8 of these rules; (c) internet service authorisation, which shall comprise the telecommunication services as detailed in Part C (Internet Service Authorisation) of Chapter 8 of these rules; and (d) long distance service authorisation, which shall comprise the telecommunication services as detailed in Part D (Long Distance Service Authorisation) of Chapter 8 of these rules. (3) The scope of these rules relates to main telecommunication services and reference to telecommunication services in the provisions set forth below shall mean main telecommunication services. 5. Types of authorisations (1) An authorisation for main telecommunication services may be granted for providing the relevant telecommunication service as a NSO or a VNO. (2) A NSO may establish, operate, maintain or expand telecommunication network as may be required within the scope of its authorisation, and may interconnect its telecommunication network in accordance with applicable rules and regulations. (3) A VNO may establish, operate, maintain or expand telecommunication network as may be required within the scope of its authorisation and enter into mutual agreements with one or more parent NSOs as specified below: (a) a VNO authorised to provide unified service may enter into agreement with an NSO that holds an authorisation for unified service; (b) a VNO authorised to provide access service may enter into agreement with an NSO that holds an authorisation for unified service or access service or license for access service. (c) a VNO authorised to provide wireline access service may enter into agreement with an NSO that holds an authorisation for unified service or access service, or license for access service; (d) a VNO authorised to provide internet service may enter into agreement with an NSO that holds an authorisation for unified service, access service or internet service, or license for access service or internet service, as applicable; and (e) a VNO authorised to provide long distance service may enter into agreement with an NSO that holds authorisation for unified service or long distance service or license for NLD or ILD service, as applicable. Provided that in respect of each of the agreements specified above, the service area in which the VNO can provide telecommunication services shall be the smaller of either its own service area or the service area of its parent NSO. (4) A VNO may enter into agreements specified under sub-rule (3), with more than one parent NSO for all types of telecommunication services in a given service area, except for wireless access service, where such an agreement shall be with only one parent NSO. Explanation: In circumstances where the same VNO seeks to provide both wireless and wireline access service in a service area, such VNO can enter into an agreement with one parent NSO in respect of the wireless access service, while for wireline access service, it can enter into agreements with more than one parent NSO. (5) Any access by a parent NSO to a VNO shall be on the basis of a mutual agreement between the relevant VNO and NSO: Provided that, the Central Government or TRAI may provide relevant notifications, orders, directions, or guidelines, to protect the interest of users. (6) Each parent NSO and its VNOs shall provide updates to each other in advance in respect of any change in the status of their respective authorisations, including with respect to revocation, surrender or expiry of such authorisations, and further comply with the provisions of sub-rule (7) and (8) below. (7) In the event of revocation, surrender, or expiry of the authorisation of a NSO, such NSO shall notify its VNO, if any, clearly stating the options available to such VNOs, by issuing a notice of at least thirty days, prior to the effective date of revocation or surrender or expiry of its authorisation. (8) In the event of revocation, surrender, or expiry of the authorisation of a VNO, such VNO shall notify its NSO, by issuing a notice of at least thirty days, prior to the effective date of revocation or surrender or expiry of its authorisation, and for the telecommunication services other than mobile, all users of the VNO shall be migrated to any of the tariff plans of the parent NSO without any extra charges to the user: Provided that the parent NSO shall ensure such migration as per the tariff plan opted by each user: Provided further that the users of mobile telecommunication services of the VNO shall have the option to port their telecommunication services, using MNP facility, to the authorised entity of their choice. (9) The conditions set forth under sub-rule (6), sub-rule (7) and sub-rule (8) shall be made part of the mutual agreement between a parent NSO and its VNO, and such agreement shall stand terminated upon the effective date of revocation, surrender, or expiry of the authorisation of either VNO or NSO. 6. Service area of authorisation The service area of authorisation for each category of main telecommunication service, shall be as follows: (a) The service area of authorisation for unified service shall be the national service area; (b) The service area of authorisation for access service shall be the telecom circle or metro service area; (c) The service area of authorisation for internet service shall be either the national service area, or telecom circle or metro service area; and (d) The service area of authorisation for long distance service shall be the national service area. 7. Duration of Authorisation (1) The initial validity period of an authorisation for provision of telecommunication services shall be twenty years from the effective date unless curtailed or revoked earlier for reasons specified in these rules. (2) The duration of an authorisation may be renewed as provided under rule 18. 8. Eligibility criteria for grant of an authorisation (1)An applicant seeking authorisation under these rules shall be a company incorporated under the Companies Act having minimum paid up equity capital and minimum networth, as specified in Schedule C to these rules: Provided that where an applicant possesses one or more authorisations or applies for one or more new authorisations: (a) the requirement of minimum paid up equity capital shall be equal to the sum total of the minimum paid up equity capital requirement for each such authorisation as specified under Schedule C. (b) the requirement of minimum networth shall be equal to the sum total of the minimum networth requirement for each such authorisation as specified under Schedule C. Provided further that where an applicant possesses one or more authorisations or applies for one or more new authorisations under sub-section (1) of section 3 of the Act, for any type of telecommunication service or telecommunication network, the requirement of minimum networth and minimum paid up equity capital shall be equal to the sum total of the minimum networth and minimum paid up equity capital requirement for each such authorisation, respectively. (2)The foreign direct investment in any applicant shall be in compliance with the laws and policies of India as applicable at the time of making the application for authorisation under rule 9: Provided that direct or indirect investors in the applicant shall also be in compliance with the laws and policies of India as applicable. (3)The applicant shall not have any direct or indirect investment from a prohibited investor or control of a prohibited investor. (4)The applicant shall ensure that its beneficial interest in another authorised entity, is in compliance with requirements of rule 15 and shall provide a certificate from a practicing company secretary or chartered accountant of such compliance to the Central Government, along with its application under sub-rule (1) of rule 9. (5)In the event the applicant is an entity that had held a license under the Indian Telegraph Act 1885, and which license had been terminated or surrendered or expired, then such applicant shall have to make payment of all amounts, as may be determined by the Central Government, as being payable under the earlier terminated or surrendered or expired license, including applicable interest calculated based on the rate stipulated for delayed payment, under the relevant license that had been held by such applicant. (6)In the event the applicant is an entity that had been granted any authorisation under the Act and the following circumstances apply: (a) it had surrendered such authorisation but has pending dues payable in respect thereof under rule 23; (b) it had been subject to revocation under rule 21 and is submitting an application for authorisation under these rules after adjudication thereof, but during such period when it could have submitted an application for authorisation, but has pending dues payable thereof; or (c) its authorisation had expired due to efflux of time, and it has pending dues payable; then such applicant shall make payment of all amounts, as may be determined by the Central Government, to be considered as eligible to apply for an authorisation under these rules. 9. Application for obtaining an authorisation (1)Any person intending to provide telecommunication services shall submit an application on the portal, in the form and manner, and accompanied by such documents as specified on the portal for this purpose. (2)If the applicant for authorisation under these rules is an existing licensee, it shall, along with its application for authorisation: (a) apply for migration of all its existing licenses for all categories of telecommunication services to the corresponding authorisation for telecommunication service, in accordance with the migration rules, and submit proof of such application; or (b) submit proof of its application for migration if such application has already been made: Provided that this sub-rule shall not apply in respect of situations specified under sub-rule (5). (3)Every application under sub-rule (1) shall be accompanied with a non-refundable processing fee as stipulated in Schedule A to these rules. (4)An applicant under these rules may simultaneously apply for one or more authorisations in different service areas. (5)An authorised entity shall not be permitted to hold more than one authorisation for a specific telecommunication service in the same service area: Provided that in the event an authorised entity or a licensee holding an authorisation or license in a service area, as the case may be, makes an application for obtaining an authorisation for a telecommunication service or obtains an authorisation for a telecommunication service in accordance with the merger rules, the scope and service area of which includes in its entirety, the scope and service area for which it already holds an authorisation or license, then such existing authorisation or license shall be deemed to be subsumed into the new authorisation upon its grant or acquisition or restructuring as per the merger rules, and the authorisation or license so subsumed shall be deemed to be cancelled. Provided further that, the subsumption and cancellation of the prior authorisation or license: (a) shall not result in any extinguishment or waiver of any dues, penalties, liabilities or obligations incurred under such earlier authorisation or license, as the case may be, and (b) such dues, penalties, liabilities or obligations shall stand transferred to and be deemed to be carried forward under the new authorisation, and remain payable by such entity and recoverable by the Central Government. 10. Grant of Authorisation (1)Upon examination of the application submitted under sub-rule (1) of rule 9, the Central Government may seek clarifications or further documents, as may be required. (2)In the event an applicant is found to be eligible for grant of an authorisation, a letter of intent shall be issued to the applicant through the portal. (3)An applicant shall comply with the terms and conditions as specified in the letter of intent within the time period specified therein, including, payment of the entry fee, as specified for such authorisation in Schedule A, and submission, in the form and manner as specified on the portal, of an initial guarantee, of the amount as specified for such authorisation in Schedule A, of any of the following: (a) a bank guarantee from any scheduled bank or public financial institution, (b) an insurance surety bond, issued by an insurance company, in accordance with the applicable rules and guidelines issued by the Insurance Regulatory and Development Authority of India, with a minimum validity period of one year, or (c) non-interest-bearing security deposit with the Central Government; and submit evidence of the same on the portal. (4)If the requirements stipulated in the letter of intent are not fulfilled within the time period stipulated in the letter of intent, such letter shall be deemed to have lapsed, and the application for authorisation shall stand rejected: Provided that the Central Government may, based on consideration of a request for extension of time made by an applicant prior to the expiry of the time specified in the letter of intent, in the form and manner as may be specified on the portal, grant a one-time extension not exceeding thirty days from the date specified in the letter of intent. (5)Upon compliance with the terms and conditions of the letter of intent by the applicant, a unique authorisation number shall be generated on the portal and an authorisation shall be granted to the applicant in the format specified in Schedule D to these rules. (6)Each application for authorisation shall be processed on the basis of the statements, averments, representations and submissions made by the applicant and on the basis of the supporting documents so provided and if at any time, such information is found to be incorrect, the provisions of rules 21 and 22 shall apply. (7)The Central Government shall endeavour, to the extent reasonably practicable, to decide on an application received under rule 9 within a period of sixty days of the applicant providing clarifications or additional documents as may be required under sub-rule (1): Provided that any decision rejecting the application, other than as a consequence of sub-rule (4), shall be accompanied by reasons to be specified in writing. (8)Any applicant who has been issued a letter of intent for grant of a license under the Indian Telegraph Act 1885, prior to notification of these rules, shall be considered for grant of corresponding authorisation under the Act, subject to acceptance by the applicant, and in such cases, the processing fee and entry fee, if already paid, shall be adjusted towards the processing fee and entry fee, as specified, for grant of such authorisation: Provided that the applicant shall also be required to pay the difference of entry fee, if required, in respect of grant of authorisation under the Act. 11. Non-Exclusive authorisation Each authorisation granted pursuant to these rules shall be on a non-exclusive basis and additional authorisations with same or different terms and conditions for the same or different telecommunication services may be granted by the Central Government within the same or other service areas without any restriction on the number of authorised entities: Provided that the Central Government may, on its own or through any public entity, provide telecommunication services anywhere in India. CHAPTER 3: GENERAL CONDITIONS 12. Compliance with the Act (1) An authorised entity shall comply with the provisions of the Act and the rules thereunder, including all notifications, orders, directions, or guidelines issued by the Central Government under the provisions of the Act or rules, which shall be deemed to be incorporated into each authorisation issued under the Act. (2) An authorised entity shall also comply with notifications, orders, directions, or guidelines, not inconsistent with these rules, issued by the Central Government for the purpose of giving effect to these rules. 13. Compliance with the TRAI Act An authorised entity shall be bound by the provisions of the TRAI Act, and any non-compliance thereof shall be addressed under the TRAI Act. 14. Continuing Compliance with Eligibility Conditions (1) An authorised entity shall maintain, at all times during the term of authorisation, the minimum paid up equity capital as specified in sub-rule (1) of rule 8 read with Schedule C to these rules. (2) An authorised entity as well as its investors shall continue to comply with all applicable laws and policies of India, including laws relating to foreign investment, at all times during the duration of authorisation. (3) An authorised entity shall ensure that no prohibited investor has any direct or indirect investment, or control in such entity, at all times during the duration of authorisation. 15. Limitations on Cross Holdings (1) An authorised entity, holding access spectrum or offering a type of telecommunication service or network, as may be specified by the Central Government, or its material shareholder, directly or indirectly, shall not have any beneficial interest in another authorised entity or licensee holding access spectrum or offering such specified type of telecommunication service or network in the same service area: Provided that the limitation under this rule shall not be applicable: (a) between a VNO and its parent NSO; and (b) between VNOs that have the same parent NSO. (2) An authorised entity holding an authorisation to provide unified service or access service or long distance service under the Act, or its material shareholder, shall not hold any equity, either directly or indirectly, in another authorised entity holding an authorisation to provide mobile number portability service. (3) For the purpose of this rule: (a) “material shareholder” shall mean a person, other than Central Government, financial institutions and scheduled banks, which hold ten percent or more equity in the authorised entity; (b) “beneficial interest” shall mean holding of any equity or control, directly or indirectly, including through chain of companies, over the affairs of the relevant authorised entity, whether or not such person is a shareholder, or director or holding any position in the management of the company. 16. Reporting and Disclosure Obligations (1) An authorised entity shall submit to the Central Government by 15th January of every year: (a) details of its Indian and foreign equity holders, both direct and indirect, as of 1st January of that year; (b) compliance report regarding foreign direct investment pursuant to sub-rule (2) of rule 8; and (c) compliance report regarding beneficial interest in another authorised entity pursuant to rule 15; in the form and manner as may be specified on the portal for this purpose along with a certification by its statutory auditor appointed in accordance with Companies Act, 2013 or a practicing company secretary, confirming the same. (2) An authorised entity shall submit to the Central Government by 15th January of every year, a compliance report on minimum paid up equity capital requirement, as of 1st January of that year, in the form and manner as may be specified on the portal for this purpose along with a certification by the company secretary or its statutory auditor appointed in accordance with Companies Act, 2013, confirming the same, countersigned by the duly authorised director of such authorised entity: Provided that the Central Government may exempt authorised entities, having a turnover not exceeding an amount as may be specified by the Central Government, from the requirement of such submission. (3) An authorised entity shall: (a) report any change in its shareholding, in the form and manner as may be specified on the portal, within fifteen days from the date of such change in shareholding and shall also ensure compliance with any statutory requirements, including obtaining relevant permissions, under applicable laws; (b) report any change in the name under which it has been incorporated under the Companies Act, in the form and manner as may be specified on the portal, along with the certified copy of the certificate issued by the Registrar of Companies for the same, within thirty days from the date of issue of such certificate; (c) submit to the Central Government any change in details, relating to ownership, control, address and contact details, or any other such material details, in the form and manner as may be specified on the portal, within fifteen days of such change. (d) furnish to the Central Government, on demand, such documents, accounts, estimates, returns, reports or other information as directed within specified timelines, in the form and manner, as may be specified on the portal. (4) An authorised entity shall nominate and communicate to the Central Government and the relevant authorised agency, in the form and manner specified for this purpose, the details of a nodal person who shall be responsible for providing any report or information or extending the necessary support, as may be required under these rules. 17. Restrictions on transfer of authorisation (1) An authorised entity shall not: (a) assign or transfer its authorisation, whether directly or indirectly, or in any manner whatsoever, without the prior written approval of the Central Government; (b) enter into any partnership or agreement for sub-leasing or sub-authorisation; or (c) create any interest in favour of a third party in such authorisation, except to the extent and in the manner permitted in the rules prescribed under section 45 of the Act. (2) An authorisation may be assigned or transferred only pursuant to: (a) any restructuring or acquisition of an authorised entity in accordance with the merger rules; or (b) exercise of security interest by any lender financing the relevant authorised entity holding such authorisation in accordance with the rules prescribed under section 45 of the Act. 18. Renewal of Authorisation (1) An authorised entity may submit an application for renewal of authorisation, in the form and manner as specified on the portal for this purpose, at least twelve months prior to the expiry of the authorisation, along with processing fee for such renewal, as specified in Schedule A of these rules: Provided that an application for renewal may be submitted up to four months prior to the expiry of the authorisation, subject to payment of late fees as may be specified by the Central Government for this purpose. (2) The Central Government shall, on receipt of an application under sub-rule (1), consider renewal of duration of authorisation by a term of twenty years, subject to such terms and conditions as may be specified by the Central Government, as well as compliance with law and policy applicable at the time of such renewal: Provided that any decision rejecting the application shall be accompanied by reasons to be specified in writing. (3) Where an application has been rejected in terms of sub-rule (2), or no application for renewal of authorisation is received within the timelines specified under sub-rule (1), then such authorisation shall expire at the end of the validity period of an existing authorisation, and the authorised entity shall notify all its users, clearly stating the options available to such users, including that of MNP, by issuing a notice of at least thirty days, as regards the effective date of expiry of its authorisation by efflux of time and ensure quality of telecommunication network and telecommunication service, till the effective date of expiry. 19. Assignment and Use of Spectrum (1) The grant of an authorisation under the Act or a permission under an existing authorisation to use satellite systems for providing telecommunication services, does not confer any right to assignment and use of spectrum. (2) An authorised entity may apply for assignment of the spectrum under the rules prescribed under sub-section (3) of section 4 of the Act. (3) Where an authorised entity holds spectrum, or applies for assignment of spectrum under the relevant rules, the terms and conditions of such assignment, and where applicable, the terms and conditions of the relevant Notice Inviting Applications (NIA) for auction of spectrum, shall be deemed to be incorporated into the terms and conditions of the authorisation, and an authorised entity shall use the spectrum for provision of telecommunication services in conformity with the terms and conditions of assignment, including, where applicable, the terms and conditions of the relevant NIA, as well as the terms and conditions of authorisation. 20. Force Majeure event (1) If the performance of any obligation under an authorisation by an authorised entity is prevented or delayed, in whole or in part, by reason of a force majeure event, and such entity has complied with its notification obligations under sub-rule (2), the Central Government shall, neither revoke the authorisation, nor claim any damages against such authorised entity, in respect of such non-performance or delay in performance for the duration of such event. (2) An authorised entity shall notify to the Central Government, in the form and manner as may be specified for this purpose, the occurrence of a force majeure event within twenty-one days from the date of occurrence of such event: Provided that telecommunication service under the authorisation shall be resumed as soon as practicable, after such force majeure event comes to an end or ceases to exist and the decision of the Central Government as to whether the telecommunication service may be so resumed and the time frame within which such telecommunication service may be resumed or not, shall be final and binding. (3) Any force majeure event shall not result in the extension of the duration of the authorisation: Provided that the Central Government may, on a case by case basis, taking into consideration the circumstances of the force majeure event, reduce or waive the authorisation fee for the inoperative period caused due to such event. (4) An authorised entity shall not be entitled to claim any compensation for the force majeure event, or any damages against the Central Government for non-performance or delay in performance of the Central Government’s obligations by reason of the force majeure event. 21. Default by an authorised entity (1) The adjudication and appeal of any contravention or breach of the terms and conditions of authorisation shall be governed by the Telecommunications (Adjudication and Appeal) Rules, 2025: Explanation: (a) In the event an authorised entity against whom corporate insolvency resolution process has been initiated under Insolvency and Bankruptcy Code, 2016 and a resolution professional is appointed for such authorised entity and such authorised entity fails to comply with terms and conditions of authorisation, then such breach shall be governed by the Telecommunications (Adjudication and Appeal) Rules, 2025; (b) In the event an authorised entity is directed to be placed into liquidation or is ordered to be wound up; then the Central Government without prejudice to any other remedy available to it, for breach of terms and conditions of authorisation, may revoke the authorisations granted to such authorised entity and sub-rule (5) to sub-rule (11) of this rule shall become applicable. (2) The Central Government may specify the gradation of penalties imposed pursuant to such adjudicatory process as applicable for breach of terms and conditions of authorisation, having regard to the factors listed under sub-section (3) of section 32 of the Act. (3) Where recommendations regarding suspension, revocation or curtailment of the duration of the authorisation under clause (b) to sub-section (1) of section 32 of the Act have been made, the Central Government shall issue a show cause notice to an authorised entity, specifying a period of up to twenty-one days to reply to the same. (4) The Central Government may, after due consideration of the reply submitted by an authorised entity, suspend or curtail, in whole or in part, or revoke the authorisation of such entity: Provided that in the event an authorised entity does not submit its reply within the time period specified in the show cause notice, the Central Government shall proceed to take a decision on suspension, revocation or curtailment of authorisation based on the material on record. (5) Any order of suspension or revocation or curtailment of an authorisation shall be published by the Central Government on the portal and be effective from the sixty-first day from the date of such order. (6) An authorised entity shall make public any order of curtailment, suspension or revocation within forty-eight hours of such order being made available on the portal: Provided that the suspension of authorisation shall not be a cause or ground for extension of the duration of the authorisation. (7) Pursuant to the order under sub-rule (5) published on the portal, an authorised entity shall also give notice of at least thirty days to all its users within thirty days from the date of such order, clearly stating the options available to such users, including that of MNP. (8) An authorised entity shall maintain the quality of telecommunication network and telecommunication service till the effective date specified under sub-rule (5). (9) An authorised entity shall not be entitled to refund of any fees or charges paid in respect of, or under an authorisation, if such authorisation is suspended, curtailed or revoked. Provided that no authorisation fee shall be payable for the period for which the authorisation remains suspended in whole. (10) An authorised entity whose authorisation is revoked as well as its promoters shall not be eligible to apply for authorisation for any of the telecommunication services under the Act for a period, as may be determined by the Central Government, which shall not exceed three years. (11) The terms and conditions provided in the rules for security interest notified under section 45 of the Act, shall apply in respect of any revocation of authorisation. 22. Reversal of suspension, revocation or curtailment (1) An authorised entity whose authorisation has been suspended, curtailed or revoked under sub-rule (4) of rule 21, may, within fifteen days from the date of the order for suspension, curtailment or revocation, submit to the Central Government the remedial measures it has undertaken to address the underlying breach of terms and conditions of authorisation, with evidence thereof. (2) The Central Government may, after due consideration of such submission, and if it is satisfied that the substantial violation has been remedied, within thirty days from the date of the order for suspension, curtailment or revocation, reinstate the authorisation. 23. Surrender of authorisation (1) An authorised entity seeking to surrender an authorisation granted under these rules, shall submit an application, in the form and manner as specified on the portal, at least sixty days prior to the proposed date of surrender, along with an undertaking, and other information as specified by the Central Government on the portal: Provided that a NSO or VNO seeking to surrender the authorisation and applying to the Central Government under this sub-rule shall also comply with their respective obligations specified under sub-rule (7) and sub-rule (8) of rule 5. (2) The Central Government shall either accept or reject an application under sub-rule (1), within thirty days of receipt of such application, and if accepted, the effective date of surrender shall be the sixty-first day from the date of receipt of such application by the Central Government: Provided that, any decision rejecting the application, shall be accompanied by reasons to be specified in writing. (3) If an application under sub-rule (1) is neither accepted nor rejected within thirty days of receipt of the application by the Central Government, such application shall be deemed to be accepted. (4) The details relating to surrender of an authorisation by an authorised entity shall be made available on the portal by the Central Government and the same shall be made public by an authorised entity, within forty eight hours of being made available on the portal. (5) Pursuant to the acceptance under sub-rule (2) or deemed acceptance under sub-rule (3), an authorised entity shall notify all its users, clearly stating the options available to such users, including that of MNP, by issuing a notice of at least thirty days, as regards the effective date of surrender of its authorisation and ensure quality of telecommunication network and telecommunication service, till the effective date of surrender. (6) An authorised entity shall maintain the quality of telecommunication network and telecommunication service till the effective date specified under sub-rule (2). (7) An authorised entity surrendering its authorisation under this rule, shall be responsible for the payment of all dues payable till the effective date of surrender as determined by the Central Government, including in respect of authorisation fees. (8) The terms and conditions provided in the rules for security interest notified under section 45 of the Act shall apply in respect of any surrender of authorisation. 24. Suspension or Revocation on grounds of National Security or Public interest (1) Notwithstanding any other provision of these rules, the Central Government may suspend or revoke the operation of the authorisation, without any notice period, in whole or in part, at any time, if, in the opinion of the Central Government, it is necessary or expedient to do so in public interest, or in the interest of national security, or for the proper conduct of the telecommunication, or in the event of national emergency, or in the event of war or low intensity conflict or other similar situations: Provided that the Central Government shall not be responsible for any damage or loss caused or arising out of such actions. (2) An authorised entity shall comply with any measures as specified by the Central Government under such directions for suspension or revocation. (3) Any suspension of authorisation under this rule shall not be a cause or ground for extension of the duration of the authorisation. (4) An authorised entity shall not be entitled to any refund of fees or any other charges paid: Provided however that no authorisation fee shall be payable for the period for which the authorisation remains suspended in whole. 25. Actions pursuant to revocation, surrender or expiry of authorisation (1) Where the telecommunication network of an authorised entity or a licensee has interconnection or peering with the telecommunication network of any other authorised entity or licensee, whose authorisation or license is subject to revocation or surrender or has expired, or where an authorised entity or licensee has provided telecommunication resources to any other authorised entity or licensee whose authorisation or license is revoked or surrendered or expired, then such authorised entity or licensee shall, upon the effective date of revocation or surrender or expiry of such authorisation or license, disconnect such interconnection or peering, and withdraw such telecommunication resources. (2) On revocation, surrender, or expiry of the authorisation held by an authorised entity, the spectrum assigned, if any, to such entity shall stand withdrawn from the effective date of such revocation, surrender or expiry. (3) On revocation, surrender, or expiry of the authorisation, the relevant authorised entity shall manage its radio equipment in the manner as prescribed under the Telecommunications (Radio Equipment Possession Authorisation) Rules, 2025. CHAPTER 4: FINANCIAL CONDITIONS 26. Fee and charges: (1) In this Chapter 4, the terms Gross Revenue, Applicable Gross Revenue (ApGR), Adjusted Gross Revenue (AGR), IUC and Presumptive AGR, shall have the respective meanings specified below: (a) “Gross Revenue” of an authorised entity shall include revenues accrued to an authorised entity by way of all operations and activities and all income from any source including on account of interest, dividend, rent, profit on sale of fixed assets and miscellaneous income, without any set-off for related items of expenses. (b) “Applicable Gross Revenue” or “ApGR” for the purposes of calculating Adjusted Gross Revenue (AGR), shall be equal to Gross Revenue of an authorised entity as reduced by the items listed below: (i) revenue from operations other than telecom activities or operations; (ii) revenue from activities under an authorisation, permission or registration issued by Ministry of Information and Broadcasting; (iii) receipts from the Digital Bharat Nidhi; and (iv) revenue falling under the following items: (a) income from dividend; (b) income from interest; (c) capital gains on account of profit on sale of fixed assets and securities; (d) gains from foreign exchange rates fluctuations; (e) income from property rent; (f) insurance claims; (g) bad debts recovered; and (h) excess provisions written back: Provided that the Central Government shall from time to time specify the description and conditions applicable to these revenue sources and the manner of their computation. (c) “Adjusted Gross Revenue” or “AGR”: (i) In respect of a NSO, AGR shall be calculated by excluding the following from the ApGR: (a) interconnection usage charges (IUC), related to calls and SMS, paid to other authorised entities or licensees; and (b) roaming revenues paid to other authorised entities or licensees within India and telecommunication service providers outside India; and (ii) In respect of a VNO, AGR shall be calculated by excluding from the ApGR, charges paid by the VNO to one or more NSOs under an agreement for provision of telecommunication network, including bandwidth, leased circuits, call minutes and SMSs, as may be necessary for a VNO to provide telecommunication services to its users, subject to submission to the Central Government the copy of the agreement, specifying such charges, along with proof(s) of actual payment of such amounts. (d) “IUC” refers to the charges as defined in the Telecommunication Interconnection Usage Charges Regulations, 2003 and the Short Message Service (SMS) Termination Charges Regulations, 2013, issued by TRAI, as amended from time to time. (e) “Presumptive AGR” means an amount that is equal to five per cent of sum of the amount payable by an authorised entity for right to use of access spectrum and in case an authorised entity acquires the right to use of access spectrum at different times, the presumptive AGR shall be five percent of the cumulative sum of all such amounts payable by an authorised entity for right to use of access spectrum. (2) An authorised entity shall pay an annual authorisation fee for each authorisation, payable from the effective date of such authorisation, which shall be eight per cent of the AGR: Provided that from the second year of the effective date of the authorisation, and for each subsequent year, the authorisation fee shall be the higher of: (a) the amount specified under sub-rule (2), or (b) thirty percent of the applicable entry fee as specified in Schedule A. Provided further that in case of renewal of an authorisation, the authorisation fee shall be subject to a minimum of thirty percent of the entry fee of the respective authorisation from the effective date of renewal. Provided also that in case of migration of an existing license to a relevant authorisation, the authorisation fee shall be subject to a minimum of thirty percent of the entry fee of the respective authorisation from the effective date of migration. (3) Where an authorised entity has the right to use of access spectrum, the authorisation fee shall be the higher of: (a) eight per cent of the presumptive AGR, or (b) the amount specified under sub-rule (2); or (c) thirty percent of the applicable entry fee as specified in Schedule A: Provided that where the authorisation fee is based on clause (a), it shall be calculated from the date of acquiring the right to use of access spectrum or the effective date of the authorisation, whichever is later. (4) A VNO shall pay the spectrum charges as per the rates applicable for its parent NSO. (5) The authorisation fee under sub-rule (2) and sub-rule (3) shall be inclusive of the amount attributable to the Digital Bharat Nidhi calculated at the rate of five per cent of the AGR. (6) The quantum of authorisation fee or amount attributable to Digital Bharat Nidhi as specified may be varied through amendment of these rules at any time within the duration of the authorisation. (7) In case an authorised entity acquires the right to use of spectrum under section 4 of the Act, in addition to the authorisation fee, spectrum charges linked to AGR, if any, as per the rate specified in the rules prescribed under sub-section (3) of section 4 of the Act, shall be payable in accordance with rule 27. 27. Schedule of Payment (1) The authorisation fee or spectrum charges linked to AGR determined under these rules shall be payable in four quarterly instalments during each financial year commencing first of April, and fee for any duration of authorisation that is less than a quarter shall be calculated on a pro-rata basis based on actual number of days in the relevant quarter. (2) An authorised entity shall make payment of the quarterly instalments of the authorisation fee and spectrum charges linked to AGR in the following manner: (a) the quarterly instalment in respect of each of the first three quarters of a financial year shall be paid within fifteen days of completion of the relevant quarter; and (b) the quarterly instalment for the last quarter shall be paid in advance by the twenty-fifth of March, calculated on the basis of expected revenue for that quarter, subject to a minimum amount equal to the authorisation fee and spectrum charges linked to AGR paid for the previous quarter: Provided that an authorised entity shall adjust and pay the difference between the advance payment made for the last quarter and the actual amount duly payable for such quarter by the fifteenth of April of the next financial year. (3) Payments pursuant to sub-rule (2) shall be calculated on the basis of revenue on accrual basis for the relevant quarter, and shall be accompanied, in the form and manner as may be specified on the portal, by: (a) a self- certificate, signed and electronically verified by a representative of the authorised entity, who is authorised by a board resolution and general power of attorney, and (b) a statement of revenue for each authorisation signed and electronically verified by a representative of an authorised entity. (4) An authorised entity shall, on or before the thirtieth of June of each year: (a) submit statement of revenue for all quarters of previous financial year, duly audited and signed by its statutory auditor appointed in accordance with Companies Act, 2013, in such form and manner as may be specified on the portal for this purpose; and (b) make the final adjustment of the authorisation fee and spectrum charges linked to AGR, including applicable interest as per sub-rule (5), for the previous financial year, based on sub-rule (2) or sub-rule (3) of rule 26, as applicable. (5) In the event of any delay in payment of authorisation fee or spectrum charges linked to AGR or any other dues payable by an authorised entity beyond the period specified for such payment, the authorised entity shall also be liable to pay interest calculated at the rate of one-year marginal cost of funds based lending rate (MCLR) of State Bank of India as existing at the beginning of the relevant financial year, namely first of April, plus two per cent compounded annually: Provided that any part of a month shall be construed as a full month for the purpose of calculation of interest. (6) An authorised entity shall submit a reconciliation statement between the figures appearing in the submitted quarterly statements under sub-rule (3) with those appearing in annual accounts, duly audited and signed by its statutory auditor appointed in accordance with Companies Act, 2013, along with a copy of the published annual accounts and audit report within seven days of the date of signing of the audit report or within the timeline provided under Companies Act, 2013 for filing of annual financial statements, whichever is earlier: Provided that the annual financial statements, the statement of revenue, and the reconciliation statement as mentioned above shall be prepared following the norms as specified for this purpose by the Central Government. (7) All sums of money becoming due and payable under these rules shall be paid by an authorised entity, in the manner as may be specified, on the portal. 28. Guarantee requirements for authorisation (1) An authorised entity shall, for the purpose specified in sub-rule (2), submit a guarantee in the form and manner, as may be specified on the portal, of any of the following types: (a) a bank guarantee from any scheduled bank or public financial institution; (b) an insurance surety bond, issued by an insurance company, in accordance with the applicable rules and guidelines issued by the Insurance Regulatory and Development Authority of India; or (c) non-interest-bearing security deposit with the Central Government. (2) The purpose of the guarantee as specified in sub-rule (1) is to provide security for due compliance of all the terms and conditions of the authorisation, including but not limited to payment of authorisation fee, spectrum charges linked to AGR, penalty imposed for contravention or breach of any of the terms and conditions of the authorisation or non-compliance of notifications, orders, directions, or guidelines, issued by the Central Government from time to time, and any other dues payable under the authorisation. (3) The guarantee submitted under sub-rule (1) shall be subject to periodic annual review by the Central Government and an authorised entity shall maintain a valid guarantee for the duration of authorisation, or until all dues under the authorisation are cleared, whichever is later: Provided that the initial guarantee submitted pursuant to the letter of intent shall be for the amount as specified in respect of each relevant authorisation in Schedule A, and for the subsequent years of authorisation, for an amount determined by the Central Government, based on the higher of: (a) the amount of initial guarantee, and (b) twenty per cent of combined estimated sum, calculated in accordance with the procedure specified for this purpose on the portal, of the following: (i) authorisation fee for two quarters; (ii) spectrum charges linked to AGR for two quarters; and (iii) any other dues that are not otherwise secured. (4) An authorised entity shall extend the validity period of such guarantee at least one month prior to the date of its expiry, without any demand or notice from the Central Government. (5) Any failure to maintain a valid guarantee at any time during the duration of the authorisation, or until all dues under the authorisation are cleared, whichever is later, shall entitle the Central Government to encash the bank guarantee, claim the insurance surety bond, or appropriate the security deposit, as the case may be, without any notice to the authorised entity: Provided that no interest or compensation shall be payable by the Central Government on encashment, claim or appropriation of such guarantee. (6) When the guarantee has been encashed, claimed or appropriated, fully or partially, an authorised entity on such occasions shall restore such encashed, claimed or appropriated guarantee, as the case may be, to the full amount within fifteen days of such encashment, claim, or appropriation: Provided that the Central Government may, upon receipt of a written request from the authorised entity before the expiry of the period specified in sub-rule (6), allow a one-time extension not exceeding ten days, for such restoration, subject to reasons being recorded in writing. (7) Without prejudice to its rights or any other remedy, including those under the Telecommunications (Adjudication and Appeal) Rules, 2025, the Central Government may encash, claim or appropriate the guarantee in the following cases: (a) non-payment of authorisation fee, spectrum charges linked to AGR, or any other dues payable under the authorisation or assignment; (b) non-payment of dues arising out of penalties imposed by the Central Government; or (c) breach of any other term or condition of authorisation or assignment. (8) On revocation, surrender, or expiry of the authorisation, the relevant guarantee shall be released to an authorised entity only after ensuring clearance of all dues, which an authorised entity is liable to pay to the Central Government: Provided that in case of failure to pay the amounts due to the Central Government, the outstanding amounts shall be realized through encashment, claim or appropriation of the guarantee without prejudice to any other actions for recovery of the amounts due to the Central Government, without any further communication to such authorised entity. 29. Assessment of authorisation fee and spectrum charges linked to AGR (1) The Central Government may carry out the assessment of authorisation fees, spectrum charges linked to AGR, and any other charges due to the Central Government under these rules, in accordance with the procedure specified for this purpose. Explanation: For the purposes of this rule, the term “assessment” shall include reassessment and recomputation. (2) An authorised entity shall submit relevant documents in support of the amount excluded from ApGR to arrive at AGR in the form and manner, as specified on the portal. (3) Where an authorised entity holds an authorisation for any other telecommunication service or telecommunication network, or for the same telecommunication service in a different service area, it shall maintain and furnish separate statement of computation of authorisation fee for each authorisation and comply with notifications, orders, directions or guidelines, issued by the Central Government, as well as orders, directions, guidelines, or regulations as may be issued by the TRAI, for this purpose. (4) An authorised entity shall also prepare and furnish the annual accounts in accordance with the accounting norms and principles notified, and directions as may be specified by the Central Government or TRAI for this purpose. (5) An authorised entity, in respect of each authorisation, shall: (a) compile and maintain accounting records, that are sufficient to show and explain its transactions in respect of each completed quarter during the duration of the authorisation or of such lesser periods as the Central Government may specify, fairly presenting the costs, including capital costs, revenue, and financial position of an authorised entity’s business under the authorisation including a reasonable evaluation of the assets employed in and the liabilities attributable to an authorised entity’s business for the quantification of revenue or any other purpose; (b) pay the IUC related to calls and SMS, and roaming charges to other authorised entities and telecommunication service providers outside India for international roaming, as applicable; (c) separately pay charges for telecommunication network obtained by an authorised entity from other authorised entities, which shall be governed by mutual agreements with such entities and regulations of TRAI, where applicable; (d) ensure that bilateral settlement of accounts with other authorised entities, or with telecommunication service providers outside India for international roaming, shall be conducted through normal banking channels in a transparent manner; and (e) furnish to the Central Government details of the mechanism for the settlement of accounts with other authorised entities, including in respect of IUC, charges for usage of network and facilities, and charges for domestic and international roaming, as well as details of the actual settlements. (6) An authorised entity shall maintain and preserve billing and other accounting records of a financial year, in electronic as well as hard copy, for a period of at least six years from the date of publishing of duly audited and approved accounts of an authorised entity: Provided that, if the authorisation fee, spectrum charges linked to AGR or any other charges for any period are under dispute, the said records shall be retained until the dispute is resolved, even if the period extends beyond the six-year period specified above. (7) The Central Government or the TRAI may, at any time, direct an authorised entity to supply information or provide access to the books of annual accounts that such authorised entity maintains in respect of the provision of telecommunication services under the terms of its authorisation, and such authorised entity shall forthwith comply with such direction. (8) The records of an authorised entity shall be subject to such scrutiny as may be determined by the Central Government, with a view to facilitating independent verification of the amounts due to the Central Government, including authorisation fees, spectrum charges linked to AGR, and any other charges. (9) The Central Government may, on forming an opinion that the statements of revenue or annual accounts submitted by an authorised entity are inaccurate or misleading, order audit of the accounts of an authorised entity by appointing one or more auditors, who shall have the same powers which the statutory auditors of the company have under section 143 of the Companies Act, 2013, and the remuneration of such auditors, as determined by the Central Government, shall be payable by an authorised entity. (10) Without prejudice to sub-rule (9), the Central Government may, at any time, appoint an auditor having the same powers which the statutory auditors of the company have under section 143 of the Companies Act, 2013, to undertake special audit of an authorised entity’s accounts and records, and the remuneration of such auditors, as determined by the Central Government, shall be payable by such authorised entity. (11) If an authorised entity fails to submit the annual accounts, audit report and other required documents under sub-rule (4) and (6) of rule 27 within nine months from the end of relevant financial year, the Central Government, after reviewing all available documents and information and relevant materials, may carry out the assessment of authorisation fee or spectrum charges linked to AGR, on best judgement basis: Provided that, before proceeding with such an assessment, the Central Government shall issue a notice to an authorised entity providing it an opportunity of being heard. (12) No assessment under this rule shall be carried out for a relevant financial year after a period of four years from the end of such financial year except as provided under sub-rule (13). (13) The Central Government may carry out an assessment after the lapse of four years from the end of the relevant financial year, and up to six years from the end of such financial year, if it is of the opinion that the amount that has escaped assessment is likely to be equivalent to an amount of fifty lakh rupees or more for such financial year. (14) For the purposes of computing the period of limitation as specified under sub-rule (12) and sub-rule (13), any stay on such assessment pursuant to an order or injunction of any court, shall be excluded. (15) Notwithstanding anything contained in sub-rule (12) and sub-rule (13), assessment of authorisation fee or of spectrum charges linked to AGR may be carried out at any time pursuant to any finding or direction contained in an order passed by a court of competent jurisdiction. (16) The Central Government may, in order to ensure proper and accurate assessment, verification and settlement of authorisation fee, spectrum charges linked to AGR and any other charges paid, issue appropriate directions to authorised entities, in respect of any telecommunication service, in relation to accounts and audit of authorised entities, and an authorised entity shall comply with such directions. 30. Set Off (1) Any sum of money or claim payable by an authorised entity to the Central Government, under the terms of authorisation or assignment, may be deducted or adjusted by the Central Government against any amount or sum of money then due, or which may become due to an authorised entity under the authorisation or assignment at any time thereafter, including any guarantee, which can be converted into money. (2) The Central Government shall, subsequent to any action taken under sub-rule (1), inform an authorised entity of such set-off. 31. Recovery of dues Without prejudice to other modes of recovery, any amount due to the Central Government by an authorised entity under these rules, if not paid, shall be recovered as