TRAI Suggests Creation Of Industry Body For Cloud Service Providers

The Telecom Regulatory Authority of India (TRAI) on Monday (September 14) released its recommendations to set up an industry body for cloud service providers (CSPs) by the Department of Telecommunication (DoT) which will follow “light touch” regulatory framework.

“The Authority recommends that DoT may initiate the setting up of the first industry-led body and require all CSPs to become its members. This body would lay down broad principles and procedures to aid its functioning,” the regulator said.

It also advised that telecom service providers should not be allowed to share infrastructure that is used for Telegraph, or core telecom functions.

“DoT may require this review after two years of commencement of the functioning of the first industry body, or such time as it considers appropriate,” the regulator added.

It further recommended the scope of cloud service providers (CSPs) to those offering infrastructure as a service (IaaS) and platform as a service (PaaS) in the country or to the customers here. Software as a service (SaaS) providers can voluntarily enroll for membership.

TRAI warned telecom service providers that they will not be allowed to share infrastructure and platform with a cloud service provider if they are not a member of the industry body registered with the DoT.

An ad hoc system will be made to bring broad rules, chart the organisation structure and election procedure. The ad hoc body may have government officials and leading experts from the industry’s side, the regulator recommended.

Also, once the industry body is formed, CSPs should be told to register on the DoT’s website within six months and DoTs would also provide the details of the membership within the given time frame.

“DoT may require this review after two years of commencement of the functioning of the first industry body or such time as it considers appropriate,” the regulator said.

In October 2019, TRAI had sought public views on parameters for companies to become members of a cloud industry body and the likely governance structure, should there be single or multiple industry bodies that may be registered under the telecom department, fees that should apply to them, etc.

Earlier in 2017, TRAI had a consultation on cloud computing, where it had recommended a series of approaches, including registration, legal frameworks for data protection, and more.

A CII and KPMG report said that cloud technology, enabled by IT and bolstered by a sound telecommunications network, can herald innumerable solutions to enable telemedicine, set up remote classrooms, etc.

NASSCOM research says that the Indian cloud computing market is currently valued at $2.2 Bn and is expected to grow at 30% a year to $7.1 Bn by 2022.