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TELECOM BILL: PAVING THE WAY FOR SPECTRUM ALLOCATION

Why in the News?

• The Telecommunications Bill, 2023 was presented in the Lok Sabha, on December 18, 2023, aims to regulate telecommunication activities.
• Proposes a comprehensive rewrite addressing spectrum rules, right of way, dispute resolution, and other regulatory aspects.

Source: Business standard

Objective :

• Bill aims to address archaic colonial-era laws and adapt to the rapidly evolving telecom landscape.
• The Bill replaces the following legislations :
• Indian Telegraph Act (1885),
• Wireless Telegraphy Act (1933), and
• Telegraph Wires (Unlawful Possession) Act (1950) with a unified statute for modern times.
• Additionally, it proposes amendments to the Telecom Regulatory Authority of India (TRAI) Act, 1997.

Features of the Telecommunications Bill, 2023:

Authorisation for Telecom Activities

• Introduces “prior authorization” from the central government instead of licenses for telecom operators, for activities such as providing telecom services, establishing networks, or possessing radio equipment encompassing various transmission methods, potentially including a wide range of Internet-based communication services.
• Represents a shift from the licensing model to a more flexible framework.
• Requires Existing licences remain valid for their granted period or five years if unspecified.

Assignment of Spectrum

• Auction : Spectrum assignment through auctions, with exceptions for the specified uses allocated administratively (e.g., national security, disaster management).
• Administrative Allocation : Central government empowered to re-purpose or re-assign frequency ranges.
• Satellite Spectrum Allotment: Opens doors for satellite spectrum allotments, following the global trend. Benefits satellite Internet providers like OneWeb and SpaceX’s Starlink, with OneWeb and Jio
• Spectrum Reframing : Allows telcos to “reframe” spectrum, repurposing it for technologies other than the initially designated ones (e.g., repurposing 4G spectrum for 5G).
• “Trusted Source” Regime:

Incorporates the “trusted sources” regime introduced after the India-China border conflict.

• Allows sharing, trading, leasing, and surrender of spectrum.

Broad Definitions:

• Defines telecom services broadly, encompassing various modes of message transmission, potentially allowing regulatory intervention in online platforms.

Interception and Suspension Powers

• Retains provisions for lawful interception . Grants powers to intercept, monitor, or block messages based on specified grounds like public safety, emergencies, or state security.
• Allows temporary possession of telecom infrastructure in public emergencies , safety issues, or during war.
• Authorizes searches for unauthorized telecom networks or equipment.

Standard Specifications

• Grants Central government the authority to prescribe standards for telecom equipment, infrastructure, networks, and services.

Right of Way

• Facility providers can seek a right of way over public or private property for telecom infrastructure, provided on a non-discriminatory basis.
• Updates right-of-way laws, granting local authorities more power, such as district magistrates, to adjudicate disputes.
• Aims to accelerate the delivery of digital connectivity benefits through positive measures.

Biometric Authentication and .  Reframing Spectrum

• Mandates “biometric authentication” for telecom customers, primarily aimed at curbing spam calls and messages.

User Protection Measures

• Central government authority to implement user protection measures, including consent mechanisms for specified messages and creation of Do Not Disturb
• Mandates entities to establish online mechanisms for grievance registration and redressal.

Amendments to TRAI Act:

• Allows individuals with at least 30 years of professional experience to serve as the chairperson
• Allows those with at least 25 years of professional experience to serve as members.

Digital Bharat Nidhi

• The bill retains the Universal Service Obligation Fund created under the 1885 act for telecom services in underserved areas but renames it as Digital Bharat Nidhi.
• Allows fund utilization for research and development purposes.

Offences and Penalties

• Specifies criminal and civil offences, including imprisonment and fines for providing unauthorized telecom services, network access, or data breach.
• Civil penalties of upto 5 crore for breaching terms and conditions .

Adjudication Process

• Appointment : Central government appoints an adjudicating officer for inquiries and orders against civil offences.
• Appeals: Appeals against adjudicating officer’s orders may be filed with the Designated Appeals Committee and further to TDSAT in specific cases.

Impact:

• Signals a significant shift, considering administrative spectrum allocation after the 2012 Supreme Court ruling against the allocation of 2G spectrum.
• The Bill offers a chance to modernize telecom regulations and pave the  way for an efficient infrastructure development.
• Allocation of satellite spectrum can improve rural connectivity and boost innovation.
• The Bill Encourages investment and competitive pricing for satellite spectrum use.
• Acknowledges potential advantages of administrative assignment.

Challenges and Concerns:

• The broad definition of “telecommunication services” could lead to unintended consequences for online platforms and stiffle innovation.
• The potential for government intervention in the name of national security raises concerns about privacy and freedom of expression.
• The lack of clarity on the regulatory framework for online platforms or lack of OTT regulation could create uncertainty and hinder investment.
• The eligibility of private sector individuals for the TRAI chairperson role requires careful consideration to ensure independence and expertise.
• Opinions within the industry diverge, with some appreciating the clarity offered, while others raise apprehensions about possible dual regulation for online services.
• Potential dual regulation for online services like Google Pay and Paytm, offering messaging as an ancillary service.
• Emphasis on biometric authentication stirs privacy and security debates.

Way Forward:

• Open and transparent consultations with stakeholders, including industry experts, civil society, and online platforms, are crucial to address concerns and refine the Bill.
• Clear definitions and regulatory frameworks are needed to ensure a balance between innovation, consumer protection, and national security.
• The government must prioritize transparency and accountability in its actions and decisions related to telecom regulation.

Overall, the Telecommunications Bill 2023 presents a significant step towards reforming India’s telecom sector. It holds potential for both progress and pitfalls, demanding careful consideration and proactive measures to unlock its full potential while protecting essential rights and freedoms and setting the stage for a new era in telecommunications regulation.

Source: https://indianexpress.com/article/india/telecom-bill-paves-way-for-allocation-of-satellite-spectrum-9073632/#:~:text=The%20Telecommunications%20Bill%2C%202023%2C%20has,Musk’s%20Starlink%2C%20and%20Amazon’s%20Kuiper.

Mains Practice Question:

Discuss the key features of the Telecommunications Bill, 2023 and evaluate its potential impact on the Indian telecom sector.