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For the first time, a comprehensive regulatory structure and restrictions on spectrum assignment have been established in the proposed Indian Telecommunication Bill, 2022. It claims that auctions should be used to distribute spectrum in most cases. The Bill suggests allocation through the administrative process for some public and government interest responsibilities, such as defence, transportation, and research.
Key Takeaways
- The Indian Telecommunication Act of 2022 is another name for this legislation.
- It encompasses all of India.
- Any connection in any particular of this Act’s provisions to the start of this Act must be read as a connection to the commencement of that provision. It shall enter into force on this date even as Central Govt may, by notification, designate.
Indian Telecommunication Bill, 2022
An Indian Telecommunication Bill, 2022 draft has been made available for public comment by the Telecommunications Department (DoT) under the Ministry of Communications (MoC). The Bill seeks to provide a comprehensive framework for the oversight of telecommunications in India, according to the attached explanatory note.
Thus, it nullifies the Indian Telegraph Act of 1885, the Indian Wireless Telegraphy Act of 1933, or the Telegraph Wire (Unauthorised Protection) Act of 1950. Relevant parties have until October 20, 2022, to comment on the draft.
Given that telecommunications are a significant contributor to both social and economic development and that telecommunication networks and infrastructure are crucial components of public infrastructure, it is essential to guarantee the accessibility of services that are affordable, dependable, secure, and universal. Additionally, given that spectrum is a priceless and finite natural resource that serves the public good, it is essential to ensure effective management and use.
This Act unifies and changes the laws regulating the supply, advancement, development, and administration of telecommunication services, networks, and infrastructure and the assignment of spectrum and issues linked or incidental to it.
Background
According to the explanatory note that goes along with the proposed Indian Telecommunication Bill, 2022 (“Bill”) is intended to establish an up-to-date legislative framework for India’s telecoms regulation. It combines the rules controlling the supply of communications services, their growth, extension, and operation, as well as their infrastructure, networks, and spectrum allocation.
The Indian Telegraph Act, 1885, Indian Wireless Telegraphy Act, 1933, and the Telegraph Wire (Unlawful Protection) Act, 1950, are all repealed. It also amends several parts of the Telecom Regulatory Authority of India Act (TRAI), 1997.
However, it does not nullify any regulations, directives, or administrative orders issued or allegedly made under these laws and are still in effect by Clause 52 of the Bill. It further indicates that the Central Government may enact regulations under this Bill on “the issue of licence, register, authorization or transfer, their conditions of use and fees.”
Essential features Indian Telecommunication Bill, 2022
- The draft bill’s goal is to modify and codify current rules governing the creation, growth, and administration of telecom networks, infrastructure, and services in India.
- Three Acts that control the Indian telecom industry have been combined. The Telegraph Wires (Unlawful Protection) Act of 1950, the Indian Wireless Telegraphy Act of 1933, and the Indian Telegraph Act of 1885.
- The proposed legislation would define “telecommunication services” to include over-the-top (OTT) messaging apps like WhatsApp, Signal, and Telegram.
- As a result, OTT communication providers will be bound by the same regulations that telecom carriers must follow, requiring them to pay exorbitant licensing and spectrum fees.
- Because this provision doesn’t exist, OTT players now provide free services.
- A Telecom Regulatory Authority in India Act is also amended by the draught legislation, reducing TRAI’s authority to that of a merely advisory agency.
- The telecom department must obtain TRAI’s recommendation before a service provider is granted a licence. A legislative requirement that TRAI must ask the government for the information or documents it needs to make this proposal is likewise removed by the Bill.
In addition, the draught law suggests that the Central Government be given authority over any spectrum allocated to a telecom company experiencing bankruptcy or insolvency. There are currently no rules defining whether the range possessed by a defaulting carrier belongs to the central govt or if the banks may seize it.
The proposed law gives the Central the power to delay, convert into equity, wipe off, or offer relief to any licensee in the event of unusual circumstances, such as financial strain, consumer interest, sustaining competition, etc.
It also suggests substituting a Telecommunication Development Fund (TDF) for Universal Service Obligations Fund (USOF) (TDF). The USOF is a fund that is created by adding a 5% Universal Service Levy to the adjusted gross revenue of all telecom fund operators.
Rural connectivity has been made possible with the help of this money. The TDF’s goal is to broaden the purview of the USOF to incorporate underserved urban areas, development and research skill development, etc.
The clause with more meanings
The Bill’s broadly extended definitions provision may be considered the most significant change. In the past, clauses in the existing laws, passed before the invention of contemporary technology, were broadly interpreted to govern new technologies.
The Bill mentions modern technology in its enlarged definitions section to be as thorough as possible. This enables the Bill to resolve persistent ambiguity that hampered the interpretation of its predecessor laws when its applicability to contemporary technologies was disputed in court. Here, careful examination of the definition of “telecommunication services” included in Clause 2(21) is needed.
The term “telecommunication services” has been broadened to cover any service of any kind that is made available to customers through telecommunication, such as:
Electronic mail, voicemail (Gmail), voice services (Airtel), video services (Skype), data services (Audiotex and Videotex), fixed and mobile services (BSNL), internet & broadband services (Act Fibernet), satellite-based communication services, and TSPs like Vodafone (TSPs such as Bharti Airtel)
