The telecom industry applauded the introduction of the Telecommunications Bill, 2023 in the Parliament, calling it a ‘watershed moment in the telecom reform process’. “The Telecommunications Bill, 2023, tabled in the Parliament, represents a watershed moment in the telecom reform process and reaffirms the commitment of the Government to provide Indian telecom with a future-fit framework that helps achieve the growth aspirations of new India,” said Akshaya Moondra, CEO, Vodafone Idea Limited.
“I would like to warmly compliment the Government for introducing a progressive and forward-looking Telecommunications Bill in the Parliament. The bill suggests groundbreaking reforms by streamlining India’s licensing landscape. It aims to simplify the current convoluted system, which includes various types of licensing (license, registration, permission), into a more cohesive and efficient authorization-based regime,” said Gopal Vittal, MD & CEO, Bharti Airtel.
“The proposed legislation ensures predictability and availability of spectrum covering aspects such as refarming, harmonization and trading/leasing/sharing. This will lead to the creation of a robust digital infrastructure and increased penetration of services thereby benefiting every Indian,” he added.
The proposed law attempts to bring in a slew of structural changes to current regulatory mechanisms in the sector, ranging from simplification of the licensing regime, clarity on spectrum assignment, and a stringent requirement of user verification, among other things. The new Telecom Bill, which was cleared by the Cabinet in August this year is likely to replace the 138-year-old Indian Telegraph Act. “The Bill carries several forward-looking provisions that will help deliver the benefits of digital connectivity to all our citizens. We warmly welcome the rationalization of penalties and the legal enforceability of right of way provisions, a long-standing request of the industry. Security of telecom networks is paramount, and the Bill recognizes telecom as critical infrastructure and prescribes punitive consequences for those who damage it. By highlighting the duties of users, the Bill puts equal responsibility on consumers to meet the requirements of national security,” said Akshaya Moondra.
On the restructuring of penalties, Gopal Vittal said, “This will be achieved through a tiered system of graded penalties proportionate to the breach. The introduction of a voluntary undertaking and an appeal process within the Government aims to mitigate litigations thereby promoting more efficient resolution of disputes.”
“The Government has rightfully retained oversight of telecom networks from a sovereign security perspective, a requirement integral to India’s Telecom licenses over the last two decades,” he added.
The Telecommunications Bill, 2023 allows the government to take over, manage or suspend any or all telecommunication services or networks in the interest of national security. The draft Telecommunications Bill proposed to bring over-the-top or internet-based calling and messaging apps under the definition of telecommunications to enhance users’ safety. It had also proposed to curb the power of the Telecom Regulatory Authority of India (Trai), on which industry players had raised concerns. The draft had proposed to ease some of the rules like refund of fees for licence, registration, etc. in case a company surrenders its permit. This bill proposes the government be vested with the power to waive off entry fees, licence fee, penalty, etc. in the interest of consumers, ensuring competition in the market, availability or continuity of telecom networks, and national security.
While the bill defines transmission of messages through wire or wireless technologies as telecommunication, official sources said the definition is as per the old Act. Therefore, the bill has removed over-the-top (OTT) players from the definition of telecommunications. This gives relief to players like WhatsApp, Singal, Telegram, Google Meet, etc.
Under the new Bill, the registration of “Do Not Disturb” (DND) will get a legal mandate. This is aimed at guarding consumers against spam or unsolicited commercial messages and calls and firms violating the norms would be liable for a penalty of Rs 50,000 which can later go upto Rs 2 lakh for each subsequent violation.
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