Draft Indian Telecommunication Bill, 2022.

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Context

The Department of Telecom has released the draft Indian Telecommunication Bill, 2022.

Objective

The Bill is aimed at reforming existing telecom laws and regulations, and making them 'future ready'.
Through the Indian Telecommunication Bill, 2022, the Centre aims to consolidate and amend the existing laws governing the provision, development, expansion and operation of telecommunication services, telecom networks and infrastructure, in addition to assignment of spectrum.

Must Read: https://www.iasgyan.in/daily-current-affairs/indian-telecommunication-bill-2022

Background

Key policy interventions and technological advancements have made India the second-largest telecom market in the world.
The sector is one of the highest contributors to India’s GDP. In the last few years, the government has allowed 100% FDI in the Telecom Sector, largely deregulated BPOs and call centres, enabled in-flight Wi-Fi, and allowed deferred payments from telecom operators due to their strained financial conditions. Now, the Department of Telecom has released the draft Indian Telecommunication Bill, 2022.

Must Read: https://www.iasgyan.in/rstv/rstv-big-picture-challenges-in-telecom-sector

Provisions in the Bill

Clarity on Spectrum Assignment

The Bill reaffirms the government’s authority to assign spectrum, with or without auction, and declares common good and access to telecom services as the objective for spectrum assignment.
This may put to rest the old debate on whether spectrum assignment should maximise government’s revenue or enhance access to telecom services, and enable smoother and optimum assignment of spectrum (e.g., administrative assignment of backhaul spectrum).

Easing criminal penalties

The Bill removes several redundant penalties (e.g., trespass in telegraph office); imposes a quantum of penalties based on severity; and introduces settlement of offences by payment of fines, and voluntary undertaking.
This would augment ease of doing business and considerably reduce the threat of criminal prosecution for operational issues faced by telecom operators.
Provisions on notification (not approval) for M&A deals, and having statutory basis and guidelines for Right of Way while laying down infrastructure would further enable ease of doing business in the sector.

Licensing Internet-based apps:

The Bill requires OTT communication services – which are essentially Internet-based apps/ software – to obtain telecom licenses and thereby bring them under the telecom framework.
Given the dynamic and multifaceted nature of Internet-based services, subjecting them to a telecom licensing regime with criminal penalties could stifle innovation or even isolate the Indian market (for e.g., an interactive gaming service may choose to stop offering the interactive feature, or the game itself in India due to threat of criminal penalties for not having a license).

Wide expanse of shutdown and surveillance powers:

The Bill allows the government to direct suspension of transmission of messages or provision of telecom networks or services.
These powers are much wider than the currently existing framework on internet shutdowns and interception, and include directions for interception and disclosure of data, and suspension/ surveillance of messages “relating to any particular subject”.
The latter is an onerous obligation on telecom operators, and risks mass surveillance of the people.

Coordination with other agencies:

The Bill dilutes TRAI’s powers, granting the government the power to deal with unwanted ads and promotional messages.
It also requires broadcasting licenses to be granted under the same telecom framework, thus far handled by MIB.
TRAI also gets the power to decide on predatory pricing, thus far with CCI, whereas several provisions overlap with MeitY’s powers under the Information Technology Act.
While streamlining of multiple provisions proves helpful for the industry, relevant inter-departmental consultations should be concluded so as to remove overlap in laws, and achieve the Government’s objectives without internal constraints.
This is particularly important as telecom operators are also subject to other frameworks in the pipeline by other agencies, such as the Digital India and Data Protection Bills.

Read about TRAI: https://www.iasgyan.in/daily-current-affairs/telecom-regulatory-structure-in-india