Law for a new era

Telecommunications Bill addresses several gaps

The introduction of the Telecommunications Bill, 2023, in the Lok Sabha, to replace the telegraph law framed more than a century ago, is a welcome development. The telecom sector, in the midst of financial stress and threat of a possible duopoly, is expected to get a fresh lease of life with the changes proposed in the new Bill. The Union government has ushered in a series of reforms through the legislation. The biggest change in the Bill makes room for allocation of spectrum on administered pricing wherever necessary, including in the case of satellite broadband services, instead of a universal rule of auctioning airwaves for all telecom platforms. The Supreme Court had in 2012 ruled that there should be competitive auctioning for distribution of natural public-owned resources such as spectrum. Since then, spectrum has been allocated only through the bidding process. Along with the tabling of the Bill, the government has sought clarification from the top court on whether it could allocate airwaves through the administered pricing route in cases where it is not feasible to go for competitive bidding. The court’s reply is expected to settle the issue further.

It should help the telecom sector that the tabled Bill — seeking to replace the Indian Telegraph Act of 1885, the Indian Wireless Telegraphy Act of 1933, and the Telegraph Wires (Unlawful Possession) Act of 1950 — has kept the powers of the Telecom Regulatory Authority of India (Trai) undiluted, as opposed to the draft legislation. On the issue of the Trai chairman, the Bill favours a private-sector executive with relevant experience to take up that post, throwing the space open for more competition. On spectrum, once the legislation is passed, a clutch of reforms will unfold, easing telcos’ operations. It’s heartening that the Bill addresses all stakeholders — consumers will benefit from stringent norms for pesky callers; industry, state governments, and the Centre would find some solace if the proposed online dispute-redress mechanism works effectively. Also, telecom and tower companies could expect infrastructure backing as the Bill proposes strict action against any entity causing damage to a telecom network or interrupting any service.

In a relief to players like WhatsApp and Skype, over-the-top (OTT) telecom services have been kept out of the telecom regulations. The move to clarify that OTTs will be regulated by the Ministry of Electronics and Information Technology (Meity) may remove the present ambiguities surrounding the sector. However, the clause on the government being able to take over any telecom service or network in case of public emergency should not become a tool in the hands of the government to suppress the free market. The rules of privacy and under what circumstances the government can take over services should be clearly defined with sufficient checks and balances.                                       

In the immediate future, those waiting to launch their broadband satellite service will benefit, as the Bill has followed global practices to allow the distribution of spectrum through administered pricing in this area. But a long-term view of the new legislation is important. The first comprehensive reform in the telecom sector, after years of drafting and redrafting, is indeed a welcome reboot for an industry that holds so much promise for India.