The Indian government on Monday introduced its long awaited new telecoms bill that proposes to give the government more power in national security matters. It also potentially settles the debate on satellite spectrum allocations, and doesn't cover OTTs.
The new Telecommunications Bill 2023, which was introduced in the lower house of Parliament by Minister of Electronics and Information Technology, Communications, and Railways Ashwini Vaishnaw, is intended to replace the Indian Telegraph Act (1885), the Indian Wireless Telegraphy Act (1933), and the Telegraph Wires (Unlawful Possession) Act (1950).
One of the more controversial provisions in the telecoms bill would give the government power to intercept, monitor, or block and search messages – and even take control of telecoms networks or services – in the event of “any public emergency, including disaster management, or in the interest of public safety”.
The bill would also allow the government to suspend or ban use of telecoms gear from countries or persons deemed a threat to national security. It also requires that telecoms equipment be procured only from trusted sources.
Meanwhile, one of the hot-button issues during the law’s formulation was whether OTT apps would be considered as telecoms services. According to ET Telecom, mention of OTTs was removed from the final draft of the bill. An official told the publication that OTTs are under the jurisdiction of the Ministry of Electronics and IT (MeitY).
“If they need to be regulated or not will be decided later as part of the Digital India Act, “ the official said.
The upcoming Digital India Act is intended to replace India’s Information Technology Act (IT Act) 2000, and is expected to cover issues like cybercrime, data protection, deepfakes, online safety and the impact of AI. It will also be aligned with the Indian government’s goal of becoming a US$1 trillion digital economy by 2025-26.
According to Dezan Shera and Associates, the Digital India Act will classify digital players more granularly by type (such as OTTs, e-commerce, search engines, gaming and digital media) so that customised regulations can be created for each.
The new proposed telecoms bill also includes global mobile personal communication by satellite services (GMPCS) license holders – which includes LEO satellite broadband service providers like Eutelsat OneWeb, Starlink and Amazon Kuiper – in its list of entities who can receive radio spectrum via an administrative allocation process rather than an auction.
The issue was hotly contested in telecoms circles. Satellite players argued that an auction process would go against global norms for issuing satellite frequencies, while telecoms players like Vodafone Idea and Reliance Jio (which, ironically, has formed a satellite joint venture with SES) favored auctions.
In the end, the government agreed with the satellite companies, saying that satellite spectrum is a shared resource with multiple users, making the auction route inapproriate the report said.
AK Bhatt, Director General of the Indian Space Association (ISpA) said in a statement that the administrative allocation route would help India “align itself with international standards, promote global cooperation and also help drive innovation”.
The new telecoms bill also provides protections for consumers against spam calls and messages. Among other things, companies must obtain consent from consumers before sending promotional messages, and face tough penalties if they don’t.
The Telecommunications Bill 2023 is expected to take effect sometime next year.
