Telecommunications Act, 2023

Syllabus

GS 3   >  Economic Development   >   Indian Economy and issues   >   Communication technology

REFERENCE NEWS

This week, Indian Parliament passed the Telecommunications Bill, 2023 to reform the country's century-old telecom law, based on the Indian Telegraph Act, of 1885, the Wireless Telegraphy Act (1933), and the Telegraph Wires (Unlawful Possession) Act (1950). 

KEY PROVISIONS

1. Mandatory Government Approval: Entities must obtain prior authorization from the central government for activities like providing telecom services, building or expanding telecom networks, and possessing radio equipment.
2. Spectrum Management: The government is authorized to reclaim unused spectrum and permits the sharing, trading, and leasing of spectrum.
3. Spectrum Allocation Changes: The allocation of spectrum will primarily occur through auctions, with certain exceptions where it will be administratively assigned(by govt.) in some specific use cases like national security, disaster management, transportation, satellite services, and public broadcasting.
4. Interception Powers: In cases of public emergency or national security, the government can suspend, take control of, or supervise any telecom service. This includes the power to demand interception, disclosure, and suspension of services.
5. Digital Bharat Nidhi Fund: The earlier USOF(Universal Service Obligation Fund)for telecom services in underserved areas is now renamed as Digital Bharat Nidhi Fund which additionally focusses on research and development.
6. Dispute Resolution Mechanism: A multi-tiered structure has been established for dispute settlement, involving an adjudicating officer, a designated appeals committee, and the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) at the top tier.
7. Biometric User Authentication: Telecom entities are required to perform biometric authentication of their users to prevent fraud.
8. Extended Territorial Jurisdiction: The bill's jurisdiction now includes offences committed outside India if they involve a telecom service provided within the country.

SIGNIFICANCE 

• Replaces Archaic Laws: It seeks to replace the Indian Telegraph Act (1885), the Wireless Telegraphy Act (1933), and the Telegraph Wires (Unlawful Possession) Act (1950), which are colonial-era archaic laws that need reforms, given that the telecom sector has changed significantly in the last few years. 
• Provides Clarity for Satellite broadband services: It provides clarity for satellite broadband services, an emerging field of telecom that is expected to expand connectivity to remote areas. It aligns India with international norms and sets the stage for global players to enter. It will also help drive innovation, create opportunities for start-ups, and strengthen the country’s position in the global satellite market. 
• Takes Away Executive Discretion: An earlier draft stated that spectrum could be assigned through auction, administrative processes and “any other manner as may be prescribed.” In the current legislation, this has been limited to just auction or administrative processes. 
• Technology-based Solutions for Governance: For instance, there is a provision of online dispute resolution for grievance redressal which will usher in ease of doing business. 
• Simplification of Bureaucratic Procedures: Provisions such as applying for licences and permits for telecom operators have been simplified (through digitisation).For instance, currently, the telecom department issues more than 100 types of licences, registrations, and permissions. The Act seeks to club many of those in a single authorisation process. This will give the much-needed regulatory stability and enabling environment for the next phase of telecom expansion.  
• Does Not Interfere with OTT: The act has stopped short of extending to telecom-adjacent services (such as OTT). This will prevent overregulation of the sector. 

CHALLENGES 

• Potential for Misuse by the Executive: Concerns are being raised over the broad provisions that would allow the Centre to take over, manage or suspend any or all telecom services or networks in the interest of national security or war. Also, another clause proposes message interception and service suspension in case of a public emergency or for public safety. 
• Privacy and Surveillance Concerns: Another clause lets the government notify standards and ensure compliance for encryption and data processing in telecom. This raises the question of whether it empowers the Centre to possibly prevent popular chat apps from encrypting text messages. This goes against the user’s right to privacy. 
• Legal Challenges to Administrative Allocation: Supreme Court’s 2G spectrum allotment ruling of 2012 had recommended auctions of scarce natural resources. The ‘administrative allocation’ provision may go against this ruling. 
• Ambiguity in Definitions: Its definitions of telecom, telecom services and what constitutes a message are so broad that it potentially leaves a door open for wide interpretation. It is alleged that these definitions have been kept wide open to potentially regulate online platforms as well (such as messaging apps like Whatsapp, and OTT Platforms). 

WAY FORWARD: 

• Checks and Balances: To prevent misuse, only a declared national emergency under Article 352 of the Constitution should be allowed to trigger executive action. Any such action must require Parliamentary approval.  
• Respecting the Right to Privacy: The message interception and service suspension part must align with fundamental rights such as the right to privacy.  
• Transparency: The government must address privacy concerns with an open mind, considering the vast powers that the text of the Bill grants it. The government must also conduct rule-making with absolute transparency and consultation. 
• Broader Consultations: The government should conduct a broad-based consultation on the current version of the bill, involving all stakeholders (private players, public, etc.). 

This legislation is an attempt to rejuvenate the telecom industry, that holds so much promise for India. The telecommunications landscape has evolved dramatically since the Telegraph Act was first passed in the 19th century. Hence, regulation and lawmaking of the current telecommunication scenario should be equipped to comprehensively address the issues that have come with this digital explosion. 

PRACTICE QUESTION

Q: Discuss how the Telecommunications Bill, 2023 attempts to bring several structural changes to current regulatory mechanisms in the telecom sector.(10marks, 150 words)