On Wednesday, the Lok Sabha passed the Telecommunication Bill, 2023. Once passed by the Upper House, it will replace the Indian Telegraph Act 1885, The Wireless Telegraphy Act 1933, and the Telegraph Wires (Unlawful Possession) Act 1950, some of which date to the colonial era. The new Bill proposes significant and far-reaching changes in the regulatory architecture governing the telecom sector in India. It allows for the administrative allocation of spectrum for satellite broadband services. It has also sought to simplify the licencing regime, and streamline the processes. It has kept communication and OTT services outside the ambit of telecom regulations. The Bill also allows the Central government to take over control and management of telecommunication services in the interest of national security or in the event of a war, and for governments, both central and state, to take temporary possession of telecom services or networks in case of a public emergency.
Spectrum assignment is a contentious issue that has generated much debate in the past. Since the Supreme Court’s ruling in 2012, spectrum has been auctioned. In the case of spectrum for satellite broadband, the Bill paves the way for administrative allocation on the grounds that it would create the space for more players, particularly the start-up ecosystem in the space sector, and have a moderating influence on prices. The Bill has also brought clarity on the issue by clearly listing the areas where spectrum will be assigned by auction and where it will be allocated on an administrative basis; any addition to the list beyond the 19 areas specified in the Bill’s schedule where spectrum can be administratively allocated needs to be approved by both Houses of Parliament. The Bill has also sought to provide clarity on the telecom services. While the 2022 draft had included services like WhatsApp and Telegram as telecommunication services, this Bill has stepped back. It also seeks to do away with the ambiguity regarding the regulation of OTT services — content OTTs are under I&B Ministry and apps like Whatsapp and Telegram with the MeitY. The distinction between the network layer and the application layer (in which OTTs lie) has been maintained. The Bill has also sought to merge many of the licences, registrations and permissions into a single authorisation process. This will ease the regulatory burden.
