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The telecommunication sector is one of the biggest employers in the country, with more than 4 million employees, and contributes about 8% to India’s GDP.
The telecom Bill 2022<\/a> is perceived as a light-touch regulation, making it future-ready with a new legal framework, replacing the age-old laws. The key themes on which the Bill is constituted include the alignment with international telecommunication standards and best practices, the importance of cybersecurity, national security and public safety concerns, spectrum management issues, and a distinctive insolvency framework.
OTT as a telecommunication service
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The draft Bill expanded the purview of telecommunication services to a machine to machine communication services (IoT) and Over-the-top (OTT) services as a part of the telecom sector, which means these platforms like What’s app, Signal, Zoom, Telegram, etc. will have to apply for a licence to operate in India. The draft Bill also intends to enforce KYC (Know your customer) practices on these platforms similar to the telecom operators.
The draft also has a provision to intercept and disclose communications over any telecommunication services in the event of a public emergency.
Spectrum allocation
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The draft Bill throws light on spectrum allocation management, where the Central Government will assign the spectrum primarily through auction. However, for certain specified functions related to the public interest, such as defence, transportation, and research, the draft Bill proposes the assignment of spectrum via an administrative process. The Central Government will also notify a National Frequency Allocation Plan (NFAP) for the use and allocation of spectrum.
The draft Bill also ensures the optimal utilisation of spectrum either via technology agnostic use, by reframing and repurposing, by sharing, leasing, and surrendering spectrum assigned with prescribed terms and conditions, or by returning unutilized spectrum.
Right of Way for telecommunication infrastructure
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The draft Bill, Section 13, offers a robust regulatory framework for the establishment of telecommunication infrastructure in public property to grant permission expediently unless it gives a substantive ground for refusal.
Section 14 mentions the Right of Way (RoW) for telecommunication infrastructure on property not covered under Section 13. The telecom provider may apply to seek permission from the person\/owner and can enter into an agreement. The facility provider can undertake surveys as may be required or seek permission for establishing, operating, maintaining, repairing, replacing, augmenting, removing, or relocating any telecommunication infrastructure at a mutually agreed.
Any person providing Right of Way under Section 13 or Section 14 shall ensure the grant of the Right of Way to the facility providers in a non-discriminatory manner and, as far as practicable, on a non-exclusive basis.
As per Section 17 of the draft Bill, the Central Government has the power to establish common ducts and cable corridors for installing telecommunication infrastructure. Telecommunication infrastructure shall also be made available on an open access basis to facility providers, subject to fees and terms and conditions.
Insolvency, penalties, and offences
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The Draft Telecommunication Bill has a special framework to address defaults in payment by a licensee, registered entity, or assignee that allows the government to write off or relieve such amounts or part thereof.
The draft Bill intends to reduce the burden on telecom companies by reducing the penalties levied. If a licensee is unable to comply with the new requirements, then the assigned spectrum will revert to the control of the Central Government.
Fine starting with fifty thousand and going up to 5 crores and imprisonment for a term, which may extend to 3 years, will act as a deterrent.
National security and cyber security
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In case of public emergency, public safety, and matters of national security, the draft Bill provides time-bound limited suspension of transmission of messages or provision of telecommunication networks or services, preserving the rights of the citizens of India.
In tackling the cyber-frauds, the draft Bill advocates provisions related to the identification of the caller to protect the user. Misrepresentation of the identification by a person availing telecommunication services is a cognizable offence with imprisonment for a term which may extend to one year or with a fine up to rupees fifty thousand or suspension of telecom services. The draft Bill offers a legal framework for preventing harassment of users from unsolicited calls and messages.
Challenges ahead
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- Data Privacy: <\/strong>The draft Bill needs to address data privacy issues. The inclusion of OTT services as telecom services will need to oblige the KYC process, where users will have to follow similar registration steps when they buy SIM cards for a phone connection. It will increase the data storage and localization demands which have been a controversial provision in the now-withdrawn Personal Data Protection Bill<\/a> of 2019. <\/li>
- Interception and sharing of user information with the government will weaken the end-to-end encryption breaching the data privacy rights of the consumer, contradicting the right to privacy as a fundamental right in Article 21 of the Indian constitution. <\/li>
- Suspension of communication services or internet shutdowns based on a public emergency or in the interest of public safety could be a threat to an open and free internet, mounting immense economic losses to the country.<\/li><\/ul>
- TRAI Powers: <\/strong>The draft Bill plans to confine the powers of TRAI (Telecom Regulatory Authority of India), making it only a recommendation body if requested by the Department of Telecommunication<\/a>. TRAI does not have enforcement powers of its directives and can’t levy penalties on telecom companies presently. With the current draft Bill, TRAI will become defunct. <\/li>
- The bankruptcy provisions are welcoming, but the government might face challenges in executing them. <\/li><\/ul>
(Murtuza Kachwala is Managing Director, Internal Audit & Financial Advisory (IAFA) Protiviti<\/a> Member Firm for India.)<\/em><\/strong>
<\/body>","next_sibling":[{"msid":95427719,"title":"WAN spend of 5,000 large global companies to increase 44% to $85 billion by 2026: Report","entity_type":"ARTICLE","link":"\/news\/wan-spend-of-5000-large-global-companies-to-increase-44-to-85-billion-by-2026-report\/95427719","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":95428076,"entity_type":"ARTICLE","title":"Telecom Bill 2022: Critical areas & challenges","synopsis":"The telecom Bill 2022 is perceived as a light-touch regulation, making it future-ready with a new legal framework, replacing the age-old laws. The key themes on which the Bill is constituted include the alignment with international telecommunication standards and best practices, the importance of cybersecurity, national security and public safety concerns, spectrum management issues, and a distinctive insolvency framework, says Kachwala. ","titleseo":"telecomnews\/telecom-bill-2022-critical-areas-challenges","status":"ACTIVE","authors":[],"analytics":{"comments":0,"views":1156,"shares":0,"engagementtimems":4588000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2022-11-10 16:59:51","lastupd":"2022-11-10 16:59:51","breadcrumbTags":["draft telecom bill","personal data protection bill","department of telecommunication","Policy","telecom bill 2022","Protiviti","telecom bill","telecom news"],"secinfo":{"seolocation":"telecomnews\/telecom-bill-2022-critical-areas-challenges"}}" data-news_link="//www.iser-br.com/news/telecom-bill-2022-critical-areas-challenges/95428076"> - The bankruptcy provisions are welcoming, but the government might face challenges in executing them. <\/li><\/ul>