TRAI recommended amending the tripartite agreement to be concluded between licensors, licensees and lenders (which is one of the conditions for the transfer or assignment of licences) so that it includes “frequencies” and that this requirement is imposed by the WOL agreement. TRAI recommended that the sanction be imposed on the basis of whether an offence is minor or serious and how the infringement is repeated. While the penalty imposed excludes the lump sum damages provided for in the license agreement, the UL`s recommendations recommend that the DoT have the right to terminate the license in the event of a serious breach after the fourth time. For the purpose of pledging radio waves with a financial institution, the DoT has also issued guidelines requiring the signing of a tripartite agreement between each operator, a lender and the department. In early May this year, BBNL Chairman Sarvesh Singh wrote to the Universal Service Bond Fund (USOF) claiming that CSC had breached the terms of a tripartite agreement by moving connectivity devices in the last mile without informing the former. As Singh said in his letter, this would constitute an obstacle to the provision of non-discriminatory access to all telecommunications and internet access operators. >> As part of a tripartite licensing agreement, the government has recognized the idea of the range of guarantees that can be used by telecommunications companies to obtain bank funds. (Tripartite agreement between government, telecommunications and banks) UL`s draft (AS) refers to the limitation of the cross-holding company which prohibited any shareholder from holding no more than 10% of the equity of two telecommunications licensing providers in the same telecommunications circuit. TRAI indicated that the new regime would allow a group company to cross-check national licenses such as the national Long Distance/Internet Long Distance/Internet Service license with UASL licenses for the services of its other subsidiaries. In April 2012, TRAI recommended that the restrictions imposed on the cross-holding company should apply to more than one licensed undertaking located in the same service area only if frequencies had been allocated to them.
Given that the new regime decouples frequencies from licensing, TRAI recommends that the essential capital or cross-holding requirements be linked only to spectrum participation and that they only be included in the WOL agreement. TRAI has made specific recommendations regarding the performance bank guarantee (PBG) for (i) compliance with the terms of the license agreement and (ii) pbG for roll-out obligations. Regarding PBG of Rs. . . .