The Telecommunication Bill, 2023, which was introduced in the Lok Sabha on Monday has paved the way for administrative allocation of satellite spectrum, not added any extra layer of regulation for over-the-top (OTT) platforms, and has maintained status quo with regards to powers of the Telecom Regulatory Authority of India.
The Bill also seeks to simplify procedural and structural processes around spectrum, licensing, right of way, and dispute resolution in the sector. A major change is that the government has moved from licensing to authorisation for various services, a practice which is prevalent in most developed economies.
Industry bodies such as Internet and Mobile Association of India (IAMAI), Indian Space Association (ISpA), Broadband India Forum (BIF), and Digital Infrastructure Providers Association, wholeheartedly welcomed the provisions stating that there’s balance between citizens’ safety, growth of telecom sector, and regulation.
In a first of its kind, the Bill has cleared the way for allocation of spectrum for satellite communication services through the administrative route. This has been done by putting these services under Schedule 1 where so far only government and security related services figured. For the first time private firms will figure in this list.
Once the Bill becomes an Act, companies such as OneWeb, Jio Satellite, Starlink, etc, will be assigned spectrum by the government without participating in any kind of auctions. The pricing will be fixed administratively by consultations with the Trai.
This issue was the most contentious one with telecom operators like Reliance Jio and Vodafone Idea batting for auctions while tech firms like Google, Microsoft, Amazon, Starlink, etc favoured administrative allocation. Bharti Airtel was the only telco which was not in favour of auctions.
Similarly, the other major contentious issue of bringing OTT communication apps under regulation has not gone in favour of telcos. These apps will not be burdened with any additional regulatory or licensing framework or charges. They will continue to function under the current norms put in place by ministry of electronics and IT, and information and broadcasting ministry. However, the Bill authorises the government to bring OTTs under any form of regulation it deems fit if a need arises in future.
Since these two issues have been addressed in the Bill, the consultative process currently underway at Trai becomes redundant.
The Bill has also removed two contentious provisions relating to insolvency of telecom operators and defaults in payment of licence fee by them. In the earlier draft of the Bill, the DoT had put in a provision which stated that in the event of any insolvency proceedings against any telecom service provider, the latter needs to pay the dues owed to the government, or else the spectrum assigned will be taken back. This will now be separately addressed by the ministry of corporate affairs by amending the Insolvency and Bankruptcy Code.
Earlier, the government was also inclined to provide a safety net for telecom operators facing financial difficulties, which has now been removed under the Bill so that there’s no misuse in future.
As part of the spectrum reforms under the Bill, the government may permit sharing, trading, leasing and surrender of assigned spectrum, subject to the terms and conditions, including applicable fees or charges, as may be prescribed. However, telcos won’t be eligible for any refund if they surrender their spectrum before the leased period.
The Bill seeks to provide a grievance redressal mechanism and online dispute resolution to handle complaints against pesky calls and other issues. With regard to national security or public safety, the Bill gives the government powers to suspend services or takeover telecom networks.
To prevent fraudulent SIM cards, the Bill includes a provision mandating biometric identification by telecom companies before issuing SIM cards to consumers.
The Bill has also dropped controversial provisions that in the earlier version indicated diluting Trai’s powers. Further, it also made a provision that Trai chairman can now be appointed from the private sector, prescribing relevant qualifications.
TV Ramachandran, president of BIF said, “the Bill is a step in the right direction and addresses issues related to spectrum allocation for satellite services, does not burden OTTs with any regulatory levies, maintains status quo on Trai’s power. The measures will ensure innovation and growth in the sector”.
According to Purushothaman KG, partner and head, digital solutions & telecommunications at KPMG India, the Bill strikes a commendable balance between safeguarding citizens’ interests and ensuring national security, while simultaneously fostering the growth of the telecom sector.
“IAMAI hails the Bill as progressive especially since internet companies have been decisively kept out of the ambit of the final version of the Bill. IAMAI had recommended that the ambit of the Bill be limited to the network layer, thereby excluding the application layer,” the association said in a statement.
“This decision to allocate the satellite spectrum through a globally harmonised administrative method will pose a greater good for the nation and will spur growth in the nascent space sector, foster healthy competition, and ensure a level playing field for all stakeholders involved,” said AK Bhatt, director general of ISpA.
TR Dua, director general of DIPA said, “the provisions in the bill will bring uniformity across states in terms of Right of Way (RoW) rules and regulations, along with rates”.