Broad Licensing Creates Market Barriers

This provision requires licenses for operating networks, providing services, or selling communications equipment—extending regulatory control beyond traditional telecommunications infrastructure to capture equipment retailers, distributors, and digital service providers. While subsection (6) mandates "non-discriminatory and transparent" application, subsection (3) grants the Authority discretion to "grant or refuse" based on "policies and rules published from time to time," creating regulatory uncertainty for businesses. The provision lacks clear timelines for license determination and explicit appeal rights, leaving businesses without recourse if licenses are denied. Combined with the extensive conditions in 5 (price regulation, quality control, infrastructure sharing), this creates substantial compliance burdens and market entry barriers that exceed OECD norms where equipment sales and many digital services operate without operational licensing.