A Year. And Still Waiting

It may turn out to be yet another storm in India’s telecom cup, similar to what spectrum allocations have often caused, or it could be a calm breeze. With the draft Telecommunications Bill 2023, the authorities need to tread with care, juggle with options and figure out how to handle this volatile issue. That’s because this new telecom cat, tabled by former Union Communications Minister Ashwini Vaishnaw in the Lok Sabha last December, holds the potential to rewrite history by giving the Government virtual control of the strategic telecom industry.

Over the year that has passed since, this telecom tomcat has sparked political brouhaha, triggered scathing debates over the modus operandi, questioned implications on national security, and counter-balanced these against the possible revival of an industry sector that has been facing dogged times for well over a decade. In its new avatar, the Bill will allow the Government to take over, manage or suspend the use of telecom services or networks for national security reasons, also creating the ground for administrative allocation of telecom spectrum, bypassing auctions.

Shot in the arm for incumbents and aspirants

The Bill seeks to replace a 138-year-old law—the Indian Telegraph Act 1885, which still governs the telecom sector—and could turn out to be another veritable storm that spectrum allocations have oft-caused in India. Handled nimbly, though, it could also be just a calming breeze in the proverbial teacup. It depends on how the authorities handle this potentially volatile cat, a decision which could lead to either a re-enactment or a reincarnation, for the stakes are high and the proposed changes quite radical. If passed, the Bill will further invigorate OTT services and be a shot in the arm for telcos such as Mukesh Ambani’s Reliance Jio, Sunil Mittal’s Bharti Airtel and Elon Musk’s Starlink.

At the ground level, the draft Bill proposes to comprehensively rewrite telecommunications laws that have stood for 138 years, consolidating spectrum, right of way and dispute resolution into a fresh statute. It recommends doing away with the licensing regime and proposes only some ‘authorisations’ that will have to be obtained by telcos and other providers to offer services, defined as the “…transmission of any messages, by wire, radio, optical or other electro-magnetic systems, whether or not… subjected to rearrangement, computation or other processes”.

Do away with the legalese and the proposed Bill indicates that it will not extend to online services such as WhatsApp. Finally, authorisations will be required for “setting up networks” and “possession of radio equipment”.

Scrapping archaic and dated regulations

Through the Bill, the Government also proposes to scrap the runaway plethora of regulations and laws that have accumulated over a century-plus and give entities such as the National Frequency Allocation Plan statutory force more teeth. In effect, this means that while auctions will remain the “preferred” mode for allotment of spectrum, administrative allotment may also be used for services such as satellite TV and broadband, impacting the masses. Spectrum re-farming is also proposed to be allowed, which primarily means that allocated spectrum may be utilized by telcos other than the services it was initially acquired for.

For instance, 4G spectrum would be allowed to be repurposed for 5G under the new provisions and spectrum may be “harmonised”, which means strategically sharing the same across geographies. And if lying unused, spectrum may also be surrendered. All in all, more efficient and optimized utilization of scarce airwave resources has been proposed.

Is there any cause for debate or consternation?

Sure, there is, as is wont in any new amendment proposed to any existing law. Two points stand out on this burning front, and we need to sift through the legalese in parts of the proposed Bill to unearth them.

One: “The Central Government may, if satisfied that it is necessary or expedient, in the interest(s) of national security, take over the control and management of, or suspending the operation of, or entrusting any authority of the Central Government to manage any or all of any telecommunication services, or any network or part thereof, connected with such telecommunication services.” In simple English, the above clause means that the Government may take over, manage or suspend any or all telecom services or networks in the interests of national security.

Two: “The Centre may, by rules, provide for measures to protect and ensure the cyber-security of telecommunication networks and services, and the measures may include collection, analysis and dissemination of traffic data that is generated, transmitted, received or stored in telecommunication networks.” Again, in simple English, this is intended to address the issue of cyber-security and means that the Government can temporarily take over any telecom service or network even from an authorised entity, to ensure that messages of users authorised for response and recovery during a public emergency are given priority.

Staggering potential, digital inclusivity promise

There always will be, since empowering anyone rudimentarily and necessarily means taking some power and decision-making away from someone else. In the proposed draft Bill, the Government has attempted to create a regulatory and legal framework that focuses on safe and secure telecommunications, providing for digitally-inclusive growth. Those that fall in the latter category, such as the Telecom Regulatory Authority of India (TRAI), will feel slighted as their authority will be curbed to an extent. Further, the Government has also proposed that it be vested with the power to waive entry fees, licence fee, penalty, etc., in the interest of consumers, ensuring competition in the market, availability or continuity of telecom networks. Further, the Bill also seeks to ease rules like refund of fees for licence, registration, etc., in case a company surrenders its permit.

We have to face the truth—that in India, telecom changed livelihoods, even lives, bringing Indians closer to the world of connectivity and digitization, far more than any other social, governmental or Corporate overture could ever hope to achieve. Today, Indians reach out to relatives, friends, even strangers, instantly. Our plumber, carpenter, painter, electrician, driver and even the humble sabziwaala has today become a phone number. A single call, even a missed call, leads to easy access and instant gratification.

In some ways, the draft Bill is reminiscent of NTP 2001, when spectrum was given on a first-come, first-served basis. That dredged up a storm that ended up causing hiccups, Governments to fall and international debate and disrepute, and a scam that eventually turn out to have never been, as former Comptroller & Auditor General Vinod Rai admitted. In the new scheme of things though, one is certain that this matter, which carries on its shoulders national security as much as it does industry and sectoral growth, shall be managed more adroitly. The last time around, a new policy sounded the death-knell for the industry. This time around, handled right, it could be the onset of a new sunrise.

—      The writer is a veteran journalist and communications specialist.