It's 00:00, and as we enter the New Year 2024, from a telecom perspective, this year is poised to be a game-changing year with 5G aspirations, powered by the Telecom Act 2023. Telecommunication is a key driver of economic and social development, serving as the gateway to digital services across the world. However, concerning the Indian telecommunications industry, there is reason to rejoice as the industry enters the new year, 2024, with the new Telecommunications Act of 2023, which received the assent of the President on December 24, 2023, as reported by TelecomTalk. It is noteworthy that even in the age of 4G, and with one of the fastest 5G rollouts happening in India, we were stuck with Telegraph-era acts that are obsolete. It was not until we switched to the new Act, which was finally enacted.
Also Read: Telecommunications Bill 2023 Gets President’s Assent
Backdrop
The Telecommunications Bill of 2023, introduced in Lok Sabha on December 18, 2023, by Minister of Railways Communications and Electronics and Information Technology, Ashwini Vaishnaw, aims to regulate telecommunication activities. The bill repeals the Indian Telegraph Act of 1885, the Indian Wireless Telegraphy Act of 1933, and the Telegraph Wires (Unlawful Possession) Act of 1950, while also amending the Telecom Regulatory Authority of India (TRAI) Act of 1997.
The outdated legal framework, governed by laws enacted in 1885, 1933, and 1950, no longer adequately addresses the evolving nature of telecommunication, its usage, and underlying technologies, particularly in the past decade.
According to the official Gazette, "The New Telecommunications Act 2023 seeks to amend and consolidate the law relating to development, expansion and operation of telecommunication services and telecommunication networks; assignment of spectrum; and for matters connected therewith or incidental thereto."
Also Read: AIFISPA Applauds Telecommunications Bill 2023 for Promoting Digital Connectivity
Indian Telecom Market
The Indian Telecommunications Industry has a subscriber base of around 1.2 billion as of September 2023, according to TRAI. Therefore, we can safely assume that the new act will have positive implications on the industry, serving such a vast scale and a large demography with a number of challenges that need to be tackled with the best possible solutions. Thus, we can consider the new Telecommunications Act 2023 as a new phase for the industry altogether this New Year 2024.
Definition of Message, Telecommunication
Before we proceed further to provide a high-level overview of what the Telecommunications Act 2023 brings to consumers, industry, and regulatory aspects, let's clarify the definitions of "message" and "telecommunication."
As per the Telecom Act, the definition of "message" means any sign, signal, writing, text, image, sound, video, data stream, intelligence, or information sent through telecommunication.
The definition of "telecommunication" means the transmission, emission, or reception of any messages by wire, radio, optical, or other electromagnetic systems, whether or not such messages have been subjected to rearrangement, computation, or other processes by any means in the course of their transmission, emission, or reception.
The Telecommunications Act 2023
1. Spectrum - Authorisation and Assignment
The assignment of spectrum is a crucial aspect for the telecommunications industry, and the new Telecommunications Act of 2023 provides clear definitions for spectrum assignment by the government.
The government has now clarified and streamlined provisions to facilitate spectrum assignment to telecom service providers under various circumstances if it deems necessary in the public interest. Additionally, administratively assigned spectrum shall remain valid based on the assigned terms and conditions for a period of five years, resolving uncertainties around spectrum validity.
The government may permit the sharing, trading, leasing, and surrender of assigned spectrum, subject to specified terms and conditions. However, there will be no refund of any fees or charges paid if spectrum assignment is suspended, curtailed, revoked, or varied. Overall, existing licenses will remain valid for their given duration or for five years if no specific duration is mentioned.
Spectrum will be assigned through auction, except for specified uses, where it will be allocated administratively. Specified purposes include national security and defence, disaster management, weather forecasting, transport, satellite services such as DTH and satellite telephony, and services by BSNL, MTNL, and public broadcasting. The newly passed telecom bill also allows spectrum allocation for satellite-based services without participating in auctions.
With these changes, any future auctions or spectrum-related issues in the industry will have a hassle-free resolution and process.
Also Read: DIPA Welcomes Overhaul as Telecom Bill Promises State Uniformity in RoW
2. Right of Way (RoW)
There may have been instances earlier where only specific providers could set up and deploy telecommunications infrastructure in particular regions or areas due to various reasons. With the new Telecom Act of 2023, this is expected to change, as facility providers may seek a right of way over public or private property to establish telecom infrastructure. The right of way must be provided on a non-discriminatory and non-exclusive basis to the extent possible.
Under the Telecom Act of 2023, infrastructure providers will be able to deploy telecom infrastructure in a hassle-free manner, as the bill provides a mechanism to exercise the right of way for laying telecom infrastructure in both public and private property.
As reported by TelecomTalk, industry infrastructure players DIPA, AIFISPA and Indus Towers have hailed the bill as transformative.
3. National Security - Protection of Telecommunication Networks
Provisions in the Telecom Act of 2023 cover scenarios of public emergency or public safety, allowing the government to take temporary possession of telecommunication services or networks. The act also permits interception, monitoring, or blocking of messages on specified grounds related to public safety or emergencies. Telecom services may be suspended in similar circumstances, with authorised officers empowered to search premises or vehicles for unauthorised telecom networks or equipment.
4. Establishment of Digital Bharat Nidhi
The Universal Service Obligation Fund, originally established under the Indian Telegraph Act of 1885, has been retained in the Telecom Bill of 2023. Renamed as Digital Bharat Nidhi, the fund can now be used for various purposes, including promoting access to and delivery of telecom services in underserved areas, supporting research and development, pilot projects, consultancy, advisory support, and the introduction of telecom services, technologies, and products.
5. Protection of Users
You may have undoubtedly experienced and answered an unknown call while in the midst of tight timelines at work, in a meeting, or during an emergency situation or personal crisis, only to discover that it is a spam, junk, or promotional marketing call. From our personal experience, even the Do Not Disturb (DND) provision has proven to be of hardly any help for consumers, including the complaint resolution mechanism.
With the new Telecom Bill, this situation seems to change, as the government may provide measures to protect users. These measures could include obtaining prior consent to receive specified messages, such as advertising or promotional messages, the creation of Do Not Disturb registers, and a mechanism allowing users to report malware or specified messages. Entities providing telecom services must establish an online mechanism for the registration and redressal of grievances.
Furthermore, as a duty, individuals are required not to furnish false particulars or impersonate another person while availing telecom services.
6. Offences
The Bill specifies various criminal and civil offences, including providing telecom services without authorisation, gaining unauthorised access to a telecom network or data, causing damage to critical telecom infrastructure, all of which are punishable with imprisonment for up to three years, a fine of up to two crore rupees, or both. Breaching the terms and conditions of authorisation is punishable with a civil penalty of up to five crore rupees. Additionally, possessing unauthorised equipment or using an unauthorised network or service is subject to a penalty.
7. Miscellaneous
The central government may prescribe standards and assessments for telecom equipment, infrastructure, networks, and services.
While these are some of the significant updates and important areas where we can expect changes in the coming days, there may be more changes as it is the first step of the transformation.
COAI Optimistic
As reported by TelecomTalk, the Cellular Operators Association of India (COAI) has already discussed the challenges of growth, spectrum, major issues demanding attention, noteworthy developments in 2023, and the Telecom Bill of 2023, along with what lies ahead for the Indian telecom sector through its Year-End Perspective 2023 statement. You can read it in the story linked below.
Also Read: COAI Highlights 2023 Year-End Perspective for Indian Telecom
Looking Ahead
Looking ahead, we can anticipate transformational changes in the Indian Telecom Industry, considering the 5G rollouts, upcoming satellite broadband connectivity services, fiber infrastructure deployment, and, most importantly, tariff corrections for the health of the sector.
At the time of this writing, India has three private telecom companies: Bharti Airtel, Vodafone Idea, and Reliance Jio, along with state-owned telecommunications companies BSNL and MTNL.
Conclusion
With all the aforementioned changes, inclusions, and anticipated future amendments, we can assert that the Indian Telecom Industry just got Refreshed with a much-needed upgrade, transitioning from the Telegraph era to the High-Speed 5G Era with the Telecommunications Act 2023.
With gigabit-speed internet service available on smartphones and no proper use cases for the technology to deliver an experience with a noticeable difference for users for now, we enter 2024 anticipating satellite broadband connectivity to connect everyone with gigabit speeds from the sky.
A Transformation Awaits
With the new-age Acts in place, we at TelecomTalk eagerly anticipate and can't wait for the transformative changes the Indian Telecommunications Industry may experience in the New Year 2024, setting an example for the world. While the year 2023 will be known for the Telecommunications Act, we anticipate that the year 2024 will be known for the resulting transformation.
