Lok Sabha approves Telecom Bill 2023, allowing government control of communication network during emergencies
The Telecom Bill 2023 has been approved by the Lok Sabha, marking a significant development that could lead to major changes and a complete transformation of the telecom sector. This bill grants the government the authority to temporarily assume control of telecom services for national security purposes. Additionally, it introduces an alternative method for allocating satellite spectrum, moving away from the traditional auction process. Notably, the bill empowers the government to take over a telecom network during public emergencies or to ensure public safety. It also allows for the interception and cessation of messages in the interest of preventing incitement to commit offenses. Union Communications Minister Ashwini Vaishnaw stated that the bill will facilitate structural reforms in the telecom industry.
When measures can be taken
The Telecommunications Act 2023, as it is officially known, was approved by voice vote after a brief debate. Telecom Bill pilot Vaishnaw in the House.
According to the bill, actions can be taken based on it if certain conditions are met. “In case of any public emergency, including disaster management, or in the interest of public safety, the Central Government or the State Government or any officer specially authorized for the purpose by the Central Government or the State Government, if it is satisfied that it is necessary or expedient to do so by notification – take temporary possession of any any telecommunications service or telecommunications network from an authorized entity.”
According to the Bill, press messages of correspondents accredited to the Central or State Governments shall not be intercepted or detained unless their transmission is prohibited under the rules applicable to public emergency, public order etc.
Spectrum Allocation: Jio and Vodafone Arguments Rejected
The Telecom Act includes allotment of frequencies to satellite telecom companies through an administrative method, Vaishnaw said.
The provisions of the bill, it may be mentioned, are in line with the demand of global satellite service companies and reject the claim of domestic telecom companies Jio and Vodafone Idea to allocate spectrum for commercial use through the auction route.
According to the bill, “the central government allocates frequencies for telecommunications by auction, except for the entries listed in the first list, which are allocated administratively.”
In the first schedule, there are 19 cases for which spectrum will be allocated through an administrative process, including global personal mobile communications by satellite, national long distance and international long distance services, mobile communications satellite services, VSAT, in-flight and maritime links, BSNL and MTNL.
Authorization is required
After the Parliament’s approval, companies require a license to start providing telecom services instead of the current business licenses.
The bill also includes protective measures for telecommunication infrastructure and strengthens the smooth deployment of networks, especially fiber optic cables.
The center has also proposed the exemption of telecommunication networks installed in any real estate from real estate-related claims, encumbrances, liquidation or the like.
Termination of frequency assignment
The draft law provides for the termination of the allocation of frequencies if the government determines that the given frequency has not been used without a sufficient reason.
Limitation on penalties
The government has proposed a cap of ₹ 5 crore for penalties on telecom operators, up from ₹ 50 per circle earlier, which translates into a maximum penalty of around ₹ 1,100 on a telco.
Issuance of SIM cards and penalties
The bill obliges companies to issue SIM cards after the applicant’s verifiable biometric data has been collected to prevent misuse of telecommunications resources.
The minister said the bill provides for imprisonment of up to three years or a fine of up to ₹50,000 for a person who procures a SIM card or any other telecommunication resource by fraud, deception or impersonation.
The government has proposed to mandate the Telecom Regulatory Authority of India to share its response to the report sought from it within 30 days.
Vaishnaw said the bill repeals two laws, including the 138-year-old Indian Telegraph Act, 1885.
Sectoral change and benefits
“The bill brings the biggest reforms in the industry… Now there will be one simple authorization instead of 100 licenses,” he said, adding that there is a provision for four-tier dispute resolution to help reduce litigation in the industry.
“It also strengthens the legal system to deal with cybersecurity issues… There is also a regulatory sandbox that encourages innovation,” he added.
Speaking about spectrum, the minister emphasized that it is a “natural resource that must be used judiciously.”
The missing opposition
The process was carried out in such a way that most of the opposition MPs were absent from the Lok Sabha after their resignation. Vaishnaw lamented that the opposition did not participate in the debate and “they ran away”.
Industry reaction
The industry body, Broadband India Forum (BIF), said in a statement that its board at its recent meeting lauded the bill, calling it a historic milestone and very progressive. “EC was of the view that this was a historic milestone in the annals of Indian Telecom and truly a giant leap forward for Bharat’s digital economy,” it said.
It added that the bill is consumer-centric and investor-friendly and promotes the growth of the industry. It also claimed that the bill will bring many benefits to consumers besides boosting investor confidence.
BIF said the bill would provide clarity on key issues, including the power and functions of the Train. It also noted that the bill consolidates various laws from 1885, 1933 and 1950 and will help speed up the spread of Internet/broadband.
It also showed that the benefits extend to the space world as it spurs exponential growth in the space startup segment.
PTI, on the other hand, quoted BIF President T V Ramachandran as saying that the Indian Telecom Act 2023 will be a strong enabler for the wider digital ecosystem and especially for the country’s innovative OTT applications and satellite sectors.
Meta Platforms
Sandhya Devanathan, vice president of Meta India, said yesterday that the company welcomes any progressive regulation that balances user safety with innovation. He said, “…we welcome any legislation that balances user safety, provides a safe internet, and innovation and grows the nation’s economy.”
He added: “This government is very progressive in terms of regulation… it shows their support for continuing to invest in the digital economy”.
Devanathan was speaking at a conference announcing the ONDC-Meta partnership to help small businesses unlock the power of digital commerce.
(with PTI earnings)
