TRAI's Recommendations for Data Centres to render ISP services

  • November 22, 2022
  • Registrationwala
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The Telecom Regulatory Authority of India recently released recommendations on certain Regulatory Frameworks in the Telecom Industry. It was for the promotion of the Data Economy in the country. Such promotion will flourish the businesses of the many DoT Licensees,  such as the ISP license, VNo License, etc. The policy intends to further the Data Economy by establishing the following in the country:

  • Data Centres
  • Content Delivery Networks
  • Interconnect Exchanges

The TRAI has also issued Consultation Papers on the subject. After considering the inputs from all the stakeholders during the consultation process, the Authority has finalized some recommendations to boost the Digital Infrastructure Ecosystem in the country. This includes DCs, CDNs as well as IXPs.

Some of the salient features of the TRAI recommendations are detailed in the following paras:


Data Centres for ISP License service provisions

The current TRAI recommendations facilitate as well as incentivize the establishment of Data Centres and Data Centre Parks.

Data Centre Incentivization Scheme (DCIS)

For such purposes, the Authority has recommended bringing out the DCIS Scheme, i.e., the Data Centre Incentivization Scheme. The DCIS scheme is for establishing Data Centres and Data Centre Parks in the country.

DCIS to have two lists of incentives:

  • Central Government will roll out certain centre-specific fiscal as well as non-fiscal incentives
  • Central Government will issue guidelines to the States. This will extend flexibility to States in announcing fiscal incentives through their policies.

Running a Data Centre portal on National Single Window System

It is instructed to operationalize the Data Centre portals on the NSWS portal for the following purposes:

  • Time-bound Single Window Clearances to provide the required approval after the elapse of timelines for Non-Critical Categories and their permissions
  • Mandatory registration of new Data Centres and their Park operators: It must be done purely for statistical and record purposes without any registration fees.
  • The Data Centres are for the Notifications, Schemes & benefits announcements as well as the facility to query responses of potential investors. There must also be provisions for the grievance redressal of DC and DC Park operators.

DCRI Framework for State Ranking

The TRAI instructed the Central Government to implement a national-level DC Readiness Index (DCRI) framework. The Framework will be put in place to rank the Indian states as per their DC sector promoter suitability. The Authority has already suggested an indicative list of parameters and weightages for ranking the States.

Government's Incentive for States with DC Footprints

As per the TRAI's directive, the Central Government must prepare guidelines listing the incentives for establishing Data Centres and their Parks for states with scanty DC footprints. These incentives must be in line with other advanced states.

The DCIS scheme must offer incentives in the following forms:

  • Land
  • Capital Subsidy
  • Interest Subsidy

Note: As per the incentive schemes, the States can offer the the land as per their needs. But the other incentive expenses, including capital and interest, must have at least 75% contribution from the Union Government.


Establishment of the DC Economic Zones for ISP License Service Provisions

The TRAI has suggested a list of 33 SEZs. Such SEZ zones are located in areas with abandoned power and water. You can identify the SEZ zones in the following states:

  • Andhra Pradesh
  • Kerala
  • Karnataka
  • Maharashtra
  • Haryana
  • UP and MP
  • Gujarat
  • Rajasthan
  • Odisha

For more information on the Data Centres' establishment for ISP License service provisions, connect with the Registrationwala.

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