Analysis

Ten Things to know about the Telecommunications Bill, 2023

7 months ago
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Telecommunications Bill

India is a huge market for telecom and internet companies considering the importance of this sector, on Wednesday, the Lok Sabha approved a bill that grants the government the authority to temporarily assume control of telecommunications services in the name of national security. Additionally, the bill establishes a non-auction route for the allocation of satellite spectrum.

The Telecommunications Bill, 2023 was introduced in the Lok Sabha on Monday by IT Minister Ashwini Vaishnaw. The bill seeks to repeal the Indian Telegraph Act, 1885, the Indian Wireless Telegraphy Act, 1933, and the Telegraph Wires (Unlawful Possession) Act, 1950. It also amends the Telecom Regulatory Authority of India (TRAI) Act, 1997.

Ten Things to know about the Telecommunications Bill, 2023:

  1. Spectrum Allocation: The allocation of spectrum will predominantly occur through auction, except for specific purposes, for which it will be assigned administratively. These designated uses will cover national security, defense, disaster management, weather forecasting, transportation, satellite services like DTH and satellite telephony, as well as BSNL, MTNL, and public broadcasting services.
  2. Authorisation: Prior authorization from the central government will be required to provide telecommunication services, establish, operate, maintain, or expand telecommunications networks, or possess radio equipment.
  3. Power of search and monitoring: Messages or a class of messages between two or more persons may be intercepted, monitored, or blocked on certain grounds, in the interest of public safety or public emergency, security of the state, prevention of incitement of offenses, or public order.
  4. Satellite Internet Allotments: The Bill introduces provisions for allocating spectrum to satellite Internet providers like OneWeb (supported by Bharti) and U.S.-based companies such as SpaceX’s Starlink. Presently, active authorizations have been granted to OneWeb and Jio.
  5. Protection of Users: The central government may provide for measures to protect users which include, prior consent to receive specified messages such as advertising messages, creation of Do Not Disturb registers, and a mechanism to allow users to report malware or specified messages. The bill also incorporates biometric authentication which is mandatory for telecom customers to combat spam calls and messages.
  6. Powers to Specify Standards: The Central government will have the authority to establish standards and assessments for telecom equipment, infrastructure, networks, and services.
  7. Appointments to TRAI: The Bill modifies the TRAI Act to enable individuals with a minimum of 30 years of professional experience to assume the role of the chairperson and those with at least 25 years of professional experience to serve as members.
  8. Regulation of OTT Apps: Over-the-top (OTT) services and apps have been excluded from the definition of telecommunication services, providing significant relief to communication service providers like WhatsApp and Telegram. The regulation of OTT apps will fall under the jurisdiction of the Ministry of Electronics and IT, as outlined in the prospective Digital India Act, which is distinct from the provisions of the Telecom Bill.
  9. Offenses and Penalties: The Bill outlines several criminal and civil offenses. Engaging in the provision of telecom services without authorization or unauthorized access to a telecom network or data may result in imprisonment for up to three years, a fine of up to two crore rupees, or both.
  10. Digital Bharat Nidhi: Established under the 1885 Act, the Universal Service Obligation Fund is designed to facilitate the provision of telecom services  in underserved areas. The Bill preserves this provision, renaming the fund as Digital Bharat Nidhi, and additionally permits its utilization for research and development.
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Though the bill has some concerns, regarding the overarching control of the government on the Telecom sector but with the expansion of tele-users in India and diversified service providers, the bill aims to regulate and streamline the sector.

Some Interesting facts about Telecom Users in India:

  • The Telecom industry in India is the second largest in the world with a subscriber base of 1.179 billion as of August 2023.
  • India has an overall tele-density of 84.69%. 
  • India also the 4th largest sector in terms of FDI inflows, contributing 6% of total FDI inflow.
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