On 21st December, the Telecom Bill 2023 was passed in Rajya Sabha, a day after it was passed in Lok Sabha. The bill introduced several critical changes aimed at benefitting the general public by modernising and securing the telecommunication sector in the country.
Replacement of outdated laws
The telecom industry was managed in India by the Indian Telegraph Act of 1885 and the Indian Wireless Telegraphy Act of 1933. These two laws needed to be updated, and were not fully aligned with the current technological realities. The Telecom Bill 2023 replaced both of them and introduced several clauses that will streamline the telecommunication industry as per the latest technological scenario in the country.
Streamlined Authorisation and Spectrum Allocation
One of the most prominent aspects of the bill is the streamlined authorisation and spectrum allocation. The bill mandates prior permission from the union government for telecommunication-related activities. The main aim is to streamline the process of managing telecommunication services. Spectrum allocation is primarily done via auction, except the allocation is done for specific purposes such as disaster management and national security.
The approach will provide for a more flexible and scalable regulatory framework. It will help in forming a mechanism for quicker responses to technological advancements. The central government will be authorised to re-purpose or reassign any required frequency range. The government of India now holds the power to permit the sharing, trade, lease, and surrender spectrum.
Enhanced Security Measures
The bill emphasises on a strong verification process for telecom service provided. Now, it will be mandatory to get biometric-based identification for the subscribers before issuing SIM cards. The government has brought this change to enhance security and accountability within the telecom sector.
Notably, the new bill has introduced strict penalties for fraudulent SIM procurement, mandatory consent for advertising messages, biometric-based subscriber verification, specific conditions for spectrum allocation, and stringent penalties for unauthorised telecom services or equipment. Furthermore, companies can procure telecom equipment only from trusted sources per the government’s guidelines.
The government has now the power to intercept the messages and a class of messages between two or more persons if the government deems it necessary to do so for reasons including national security, prevention of incitement of offences or public order. On similar grounds, the government will have the right to suspend the telecom services. Furthermore, the government may take temporary possession of any telecom infrastructure or service for any public emergency. However, unlawful interception will attract penalties.
In the earlier draft of the Telecom Bill, Over-The-Top services were categorised under telecommunication services. However, in the revised bill, the government opted for a more inclusive approach and encapsulated OTT within a broader definition of telecommunication. In short, if the government wishes to classify OTT services as “telecommunication services”, it can do it. The aim is to combat digital fraud and misuse of communication platforms.
While services like WhatsApp, Signal and Telegram are out of their purview, it has to be noted that OTT content is going to be monitored. The OTT entities will come under the purview of the Ministry of Electronics and Information Technology, and the content distributed on these platforms will be overseen by the Information and Broadcasting Ministry.
Policy Shift in Satellite Spectrum Allocation
In the case of the satellite spectrum allocation, the bill specifically benefits the satellite broadband services sector. The bill has moved away from auction-based allocation to an administrative assignment model. It will allow the operators to bring enhancements efficiently in the sector.
No Fee Refunds for Surrendered Licenses
If the company surrenders the spectrum license, it could claim the fee paid at the time of the allocation. However, as per the new bill, there is no option to receive a refund of the fee if the entities surrender their license, registration, authorisation or assignment. It is aimed to bring financial discipline and commitment across the telecom sector and operators.
Absence of Restructuring and Insolvency Provisions
The bill has removed the provisions of restructuring, the default of payment and insolvency. The aim is to bring a more market-driven approach to the sector where the telecom operators will be held responsible for their financial sustainability and risk management. It has been seen in the past that telecom operators leave the market all of a sudden due to financial mismanagement. By removing the provisions that may support such withdrawal of service from the market, the government aimed to bring more accountability on the operators’ part.
Renaming and Expansion of USOF
The government renamed the Universal Service Obligation Fund (USOF) “Digital Bharat Nidhi”. The bill introduced a broader operational scope to allow its use for new and existing telecommunication services and technologies. The idea is to move towards a more inclusive approach to telecommunication development in India.
Clear Distinction between Telecom and Broadcast Services
The bill has brought a clear distinction between broadcast services and telecommunications. Now, the broadcasting services have been referred to as per the Cable Television Networks Act for regulatory guidance. It will bring clearer regulatory boundaries and help streamline the frameworks across the sectors.
The criticism that should die 100 deaths
Media houses are criticising the bill as it puts journalists under the scanner. According to mainstream media, as the new bill requires to furnish correct information, it could “impede whistle-blowers as well as journalists who operate under anonymity”. Interestingly, in recent times, several of the mainstream media stories turned out to be fake. Be it the Meta fiasco of The Wire or the Pegasus story that turned upside down when investigated. Who can forget how The Wire forged a complete investigation to blame the BJP for running an underground app, “Tek Fog“?
Furthermore, PRS Legislative Research claimed that the provision of surveillance would lower the degree of privacy of communications for all users. However, such arguments fail to comprehend the depth of telecommunication usage by the anti-India elements and terrorist organisations. Any such activity can be put to rest at the foundation stage if the interception of such messages is done properly as per the guidelines.
