Remarks on closed user group:
- Regulatory bodies namely Reserve Bank of India(RBI) and Securities & Exchange Board of India(SEBI) can connect to any of these CUGs without extra charge provided they do not switch traffic among networks and furnish undertaking to this effect. In case of violation of the undertaking by them, interconnection fee shall be charged from the date of approval.
- Provided that ultimate consumer of the product or service shall not be a part of the closed user group and also that the network will be used purely for legitimate internal communication purposes of the group where resale of telecommunication service and its profits are not involved. In respect of companies against 5 , 6 and 7 above, the definitions available in MRTP Act 1969 will be taken.
- In case of dedicated/captive networks for the use of closed user groups, the equipment shall be owned and operated by the licensee within the scope of license (as granted by the Government). Third party ownership and provision of service is not permitted.
- The character of the closed user group has to be maintained through out the period of validity of the permission granted.
- If a single party leased line network is given a leased line connectivity abroad to the principal/sister concern of the network hirer (any organization which comes under CUG category), such network is not to be treated as closed user group network for the purpose of charges or otherwise.
- The wholesale traders/agents of their interconnected companies may also be allowed to be connected with the CUG Network of the main hirer on the basis that these circuits for wholesale traders/agents of the inter connected companies will be charged rental of 25% extra for each such circuit connected to the CUG Network of the main hirer from the date of commissioning of such circuits.
- Private leased line networks were allowed to be connected with Inet/HVNet/RABMN. A single party leased line network is not to be treated as a CUG network by virtue of such interconnection. There shall be no restriction on the type of persons accessing a private leased line network through Inet/HVNet/RABMN provided the network hirer is not selling telecom services from his network to any of such persons.