India is now the second-largest telecom market in the world, owing to significant regulatory changes and technological developments in the country. The new draft Indian Telecommunication Bill 2022 aims to change current telecom rules and regulations and make them “future-ready.” It has now been made available for public comment by the Department of Telecom. In addition, the Government has legalized in-flight Wi-Fi, enabled 100% FDI in the sector, deregulated BPOs and call centres to a considerable extent, and permitted telecom providers to defer payments due to their precarious financial situations.
Since the 19th century, these laws have had two central tenets: first, the provision of telecom services, which is a dynamic concept in and of itself, is the “sole prerogative” of the sovereign; and second, this sovereign privilege may be transferred to private enterprises. By issuing them telecom licences and placing restrictions on them, the Government transfers this right to private enterprises. These terms and conditions currently include localization of entities and data, revenue sharing through licence fees, security screening of foreign executives, and limitations on the use of technology and equipment. As a result, telecom is one of India’s most heavily regulated industries.
Many significant modifications to India’s telecom regulatory structure are proposed under the Telecom Bill. For instance, it suggests regulating OTT communication platforms on an equal footing with “conventional” telecom services, which might subject businesses like WhatsApp or Zoom to onerous licencing requirements in India. The Telecom Bill also (again) suggests regulating spam calls and messages, which have resisted all previous attempts at control.
However, the Telecom Bill’s most significant effect may be the expansion of the Indian Government’s monitoring capabilities in telecommunications-related areas. This is crucial since the last phone tapping legal precedent has always influenced India’s data privacy laws. It may also be seen in the protections offered to computer data under Indian IT legislation. Restrictions on the Indian Government’s ability to access telecom conversations and data, as well as data held on computer systems in India or abroad, maybe “reset” if the Telecom Bill replaces the Telegraph Act.
Regardless of its final form, the Telecom Bill and its regulations will have an effect beyond SMS interceptions and phone tapping. India is also thinking about updating its Information Technology Act, which has been in effect for 20 years, to become the “Digital India Act.” The Government may have an equal chance to provide more data access and surveillance authority by reshaping India’s digital legislation. Recent Indian regulations, notably those allegedly addressing cybersecurity and intermediary rules, tend to increase surveillance.
An influential industry group purchased 5G licences for such a private enterprise 5G network during the recently finished 5G auctions, which saw bidding for the same. Interestingly, the inventions displayed at the centre were designed explicitly with these on-site use cases in mind, demonstrating how regulatory actions, industry intentions, and R&D priorities all interact, leading to this inflexion point.
While the United States and Europe are still in the early stages of pilot programmes and have not yet seen widespread adoption, India can set the global pace for such adoption. However, this calls for a well-coordinated policy strategy to guarantee that UHF spectrum over 520 MHz remains open for Direct-to-Mobile Broadcasting to maintain synergies with the worldwide device ecosystem.
The draft telecom law aims to boost accessibility for both urban and rural areas of India by expanding the scope of the Universal Service Obligation budget, and it may also make money accessible for R&D and innovation. Unsurprisingly, there have been rumblings about the weak and misguided concepts of Net Neutrality, yet, the draft bill does not mention these issues. There is no compelling reason for India to be restricted by net neutrality considerations, given the significant accessibility difference throughout the country. Instead, the focus should be on supporting creative ideas of all stripes so that citizens can obtain digital products and services at the lowest possible cost.
About the author:
Vidhu Nautiyal is Co-Founder and Chief Revenue Officer at CloudConnect Communications Pvt. Ltd.
