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Telecom Transformation: Unveiling the Hallmarks and Ramifications of the 2023 Bill

Introduction

The Telecom industry in India is the second largest in the world with a subscriber base of 1.179 Bn as of August 2023 is governed by three laws which are the Indian Telegraph Act, 1885, ) the Indian Wireless Telegraphy Act, 1933 and the Telegraph Wires (Unlawful Possession) Act, 1950.[1]

The 1885 Act regulates telegraph services, which involve sending messages in the form of symbolic codes over wires or radio waves known as telegram.[2] During India’s British colonial era, the Indian Telegraph Act of 1885 was enacted. Establishing and regulating telegram services across the nation was the Act’s main goal. In accordance with the Act, a “telegram authority” was created, with the authority to install, maintain, and operate telegraphs. The telegram authority issued licences to people and organisations that wanted to run telegram services. In the event of an emergency or for the purpose of maintaining public safety, the Act gave the government the authority to seize any telegram connection or device.  It stated that telegram contents were to be kept private and that it was forbidden for other parties to intercept or reveal telegrams. Penalties for violations pertaining to the improper use of telegrams, such as unlawfully intercepting, disclosing, or altering telegram signals, were specified under the Act. Though the technology has drastically evolved, the 1885 Act has been continued to be in used for the regulation of telecom services.[3] 

In 2001, the Communication Convergence Bill was presented in Lok Sabha. The TRAI Act and the Cable Television Networks (Regulation) Act of 1995 were intended to be replaced by the Bill, along with the three telegraph laws.  The Standing Committee on Information Technology held an examination of the Bill.  Following the 13th Lok Sabha’s dissolution, the Bill expired.  Released in September 2022 for public comment, the Department of Telecommunications released the draft Indian Telecommunications Bill, 2020. The Lok Sabha received the Telecommunications Bill, 2023 on December 18, 2023. In addition to providing a regulatory framework for the telecom industry, the Bill aims to replace the two telegraph statutes.

In the Lok Sabha, the government proposed the Telecommunications Bill 2023. The Indian Telegraph Act of 1885, the Telegraph Wires (Unlawful Possession) Act of 1950, and the Indian Wireless Telegraphy Act of 1933 are all intended to be repealed. Additionally, it modifies the 1997 Telecom Regulatory Authority of India (TRAI) Act.

 Hallmarks of the Telecommunications Bill 2023

The central government prior permission will be needed for offering telecom services and for setting up, running, maintaining, or growing telecommunications networks or owning radio equipment.  Licences that are currently in effect shall remain so for the duration of their grant, or five years if no time frame is stated.

The Bill introduces provisions for allocating spectrum to satellite Internet providers like OneWeb (supported by Bharti) and U.S.-based companies such as SpaceX’s Starlink. Presently, active authorizations have been granted to OneWeb and Jio, paving the way for satellite-based Internet services.[4] If there are no indicated applications, spectrum will be assigned administratively. Otherwise, spectrum will be assigned by auction. Some examples of the same are weather forecasting, disaster management, transportation and satellite services, such as DTH and satellite telephone.  Any frequency band may be assigned or used for new purposes by the central authority. 

Based on specific criteria, communications or a group of messages sent or received by two or more people may be intercepted, tracked, or banned.  Such measures must be required or advantageous for the sake of public safety or emergency situations, as well as for certain purposes, such as public order, state security, or prevention of crime incitement.  Procedures, safety measures, and time limits as they may be specified will apply to these actions. In the event of a public emergency or threat to public safety, the government may temporarily seize control of any telecom network, infrastructure, or services. 

User protection measures could be provided by the central government which includes requiring prior authorization for receiving some communications, such advertisements and offering a way for users to report malicious content or specific messages and establishing Do Not Disturb registries. Biometric Authentication is mandatory for telecom customers to combat spam calls and messages.[5]

Facility providers may seek a right of way over public or private property to establish telecom infrastructure.[6] Organisations installing communication systems may request permission to cross public or private land.  Insofar as it is feasible, the right of way must be granted without discrimination or restriction.

The Bill modifies the TRAI Act to permit appointment to the Chairperson position for those with a minimum of thirty years of professional experience, and membership in the position for those with a minimum of twenty-five years of experience.

Using the Indian Telegraph Act of 1885 as a foundation, the Universal Service Obligation Fund was created to supply telecom services to underprivileged communities. The Bill retains this provision, renames the fund as Digital Bharat Nidhi, and also allows its use for research and development. It has removed over-the-top (OTT) services and apps from the definition of telecommunication services, in a big relief to communication service providers such as WhatsApp and Telegram.[7]

A number of civil and criminal violations are listed in the bill.   unauthorised telecom service provision and unauthorised access to telecom networks and data carry penalties of up to two crore rupees in fines or three years in jail.  A civil penalty of up to five crore rupees might be imposed for violating the terms and conditions of authorization.  The use of unapproved networks or services or the possession of illegal equipment carries a fine of up to 10 lakh rupees.

In order to carry out investigations and issue rulings against civil violations under the Bill, the central government will designate an adjudicating officer.  The officer has to be a joint secretary or above in position.   Within 30 days, an appeal of an adjudicating officer’s order may be filed with the Designated Appeals Committee. Officers with the minimum rank of Additional Secretary will comprise this committee. Within 30 days, TDSAT will accept appeals against the Committee’s orders related to terms and conditions violations.

 Ramifications of the Telecommunications Bill of 2023

If any person fraudulently uses other person’s Govt ID to procure SIM, will face imprisonment for up to three years and a maximum penalty of Rs 50 lakh or both. This also includes SIM card spoofing to hide identity from phone call receiver. If a person owns more than nine SIMs (per Aadhaar card), he will be penalised up to Rs 50,000 for the first offence and up to two lakh rupees for each subsequent offences.[8]

Only verifiable biometric-based identification, like as an Aadhaard card, may be used by telecom service providers to confirm the identity of potential customers. This will stop fraudsters from obtaining SIM cards by using fictitious driver’s licences or voter IDs.

Providing telecom services without authorisation, or gaining unauthorised access to a telecom network or data, are punishable with imprisonment up to three years, a fine up to Rs two crore or both. Breaching terms and conditions of authorisation is punishable with a civil penalty of up to five crore rupees.[9]

Conclusion

The Telecommunications Bill of 2023 raise significant issues regarding the health of democracy, the harmony between the rule of law and individual liberties, and the ability of the government to act in response to pressing social issue as it suffers from ambiguous wording and power concentration through delegated rulemaking.

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Written by- Rupika Goundla

References

Desk, DH Web. “Telecommunications Bill 2023: 10 Key Aspects That Will Impact Phone Users & Telcos.” Deccan Herald. Accessed December 24, 2023. https://www.deccanherald.com/technology/gadgets/the-telecom-bill-2023-10-key-aspects-that-will-impact-phone-users-telecom-firms-2821952.

Drishti IAS. “Telecommunications Bill 2023.” Accessed December 24, 2023. https://www.drishtiias.com/daily-updates/daily-news-analysis/telecommunications-bill-2023.

Livemint. “Telecommunications Bill, 2023 Gets Parliament Nod; Know Its Impact on Common Man.” mint, December 22, 2023. https://www.livemint.com/industry/telecom/parliament-passes-telecommunications-bill-2023-heres-how-it-will-impact-mobile-users-in-india-5-points-11703220457244.html.

PRS Legislative Research. “The Telecommunications Bill, 2023.” Accessed December 24, 2023. https://prsindia.org/billtrack/the-telecommunication-bill-2023

www.investindia.gov.in. “Telecom Industry in India – Telecom Sector, FDI, Opportunities.” Accessed December 24, 2023. https://www.investindia.gov.in/sector/telecom#:~:text=Connecting%20the%20World.

The Wire. “With Cleverly Drafted Telecom Bill, Government Tightens Grip on Digital India.” Accessed December 24, 2023. https://thewire.in/government/cleverly-drafted-telecom-bill-government-tightens-grip-digital-india.

[1] www.investindia.gov.in. “Telecom Industry in India – Telecom Sector, FDI, Opportunities.” Accessed December 24, 2023. https://www.investindia.gov.in/sector/telecom#:~:text=Connecting%20the%20World.

[2] PRS Legislative Research. “The Telecommunications Bill, 2023.” Accessed December 24, 2023. https://prsindia.org/billtrack/the-telecommunication-bill-2023

[3] PRS Legislative Research. “The Telecommunications Bill, 2023.” Accessed December 24, 2023. https://prsindia.org/billtrack/the-telecommunication-bill-2023

[4] Drishti IAS. “Telecommunications Bill 2023.” Accessed December 24, 2023. https://www.drishtiias.com/daily-updates/daily-news-analysis/telecommunications-bill-2023.

[5] Drishti IAS. “Telecommunications Bill 2023.” Accessed December 24, 2023. https://www.drishtiias.com/daily-updates/daily-news-analysis/telecommunications-bill-2023.

[6] Drishti IAS. “Telecommunications Bill 2023.” Accessed December 24, 2023. https://www.drishtiias.com/daily-updates/daily-news-analysis/telecommunications-bill-2023.

[7] Drishti IAS. “Telecommunications Bill 2023.” Accessed December 24, 2023. https://www.drishtiias.com/daily-updates/daily-news-analysis/telecommunications-bill-2023.

[8] Desk, DH Web. “Telecommunications Bill 2023: 10 Key Aspects That Will Impact Phone Users & Telcos.” Deccan Herald. Accessed December 24, 2023. https://www.deccanherald.com/technology/gadgets/the-telecom-bill-2023-10-key-aspects-that-will-impact-phone-users-telecom-firms-2821952.

[9] Desk, DH Web. “Telecommunications Bill 2023: 10 Key Aspects That Will Impact Phone Users & Telcos.” Deccan Herald. Accessed December 24, 2023. https://www.deccanherald.com/technology/gadgets/the-telecom-bill-2023-10-key-aspects-that-will-impact-phone-users-telecom-firms-2821952.

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