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Draft Telecom Bill
The Indian Telecommunication Bill, 2022, a draft that the Union government released, contains several significant revisions.
These modifications include clauses that exempt financially troubled operators from paying fees and include over-the-top services like Netflix, WhatsApp, and Zoom in the definition of telecom services.
Three different Acts of Parliament currently control the Indian telecommunications industry:
The Telegraph Wires (Unlawful Protection) Act of 1950, The Indian Telegraph Act of 1885, and The Indian Wireless Telegraphy Act of 1933
These three different Acts are intended to be consolidated by the draught Telecommunications Bill, 2022.
Aim
To change the existing rules controlling the allocation of spectrum as well as the provision, development, expansion, and operation of telecom networks and infrastructure.
OTTs being incorporated within the definition of telecom services
According to the proposed regulation, OTT telecom service providers (like WhatsApp and Telegram) will be subject to the same licencing requirements as traditional telecom carriers.
The telecom service providers (including Airtel, Vi, and Jio) have been fighting to level the playing field with OTT apps over traditional communication services like voice calls and text messaging for a number of years.
While OTT communication players leveraged their infrastructure to provide free services, telecommunication providers had to pay significant licence and spectrum prices.
Therefore, OTT communication providers must now obtain a licence and comply with the same regulations governing telecom players in India, such as quality of service requirements and security guidelines.
Framework for Spectrum Assignment
The radio frequencies allotted to the mobile industry and other industries for wireless communication are referred to as spectrum.
According to the proposed Legislation, auctions should be used to distribute spectrum in most cases.
Meanwhile, the Bill suggests assignment through the administrative process for certain government and public interest responsibilities, such as defence, transportation, and research.
If the government decides that allotted spectrum has remained unutilized for insufficient reasons over time, it will also have the authority to terminate spectrum allocations partially or completely.
Ensure that the telecom infrastructure is expanded quickly.
The proposed Bill seeks to create a legal "right of way" that is enforceable at the state and municipal corporation levels.
The deployment of 5G services relies heavily on this regulatory framework.
It establishes a structure wherein a public institution that owns the land must quickly issue "right of way" approval, unless it provides a compelling reason for doing so.
This aims to solve the problems caused by the rapid growth of the telecom infrastructure.
Development Fund for Telecommunications
It will be common to refer to the Universal Service Obligation Fund (USOF), which was established by the Indian Telegraph Act of 1885, as the "Telecommunication Development Fund."
To ensure finance and the expansion of communication services in rural and underserved areas, the Center collects levies from telecom firms under the acronym USOF.
Currently, USOF has an excess cash balance of over 60,000 crore that is sitting unused.
Preventing Cyber Frauds
The Bill stipulates that a user receiving a message sent over telecom services must be aware of the sender's identity in order to prevent cyberfraud.
Criticism
According to experts, because land is a matter of state sovereignty, the federal government cannot use coercion to enforce "right of way" regulations on states or local organisations.
The way the Central government intends to regulate OTT communication services under this Bill also needs to be made more clear.
Analysts are also concerned that the Bill will negatively affect the Telecom Regulatory Authority of India's (TRAI) consultation role and weaken its standing.
The requirement for government consultation with TRAI on licencing matters is not included in the draught Bill.
Overall, to stay current, the Bill covers new-age services while emphasising the expansion of telecom infrastructure.
The proposed legislative framework aims to be future-proof, offers clarity about spectrum management, and saves the threat of prison time or significant financial penalties for a select group of serious offences.
Source: Business Standard