The Department of Telecommunications (DoT) in India recently publicized the draft Indian Telecommunications 2022 Bill. The Bill aims to regulate Internet-based (Over-The-Top) OTT telecom services.
Key Highlights of the Draft Bill
The draft legislation compiles three specific acts that currently regulate the telecommunication sector: the Indian Telegraph Act, 1885, Indian Wireless Telegraphy Act, 1933, and The Telegraph Wires (Unlawful Protection) Act, 1950.
Dilution of TRAI Power
Among significant elements of the draft is the proposition by the DoT to weaken some critical powers and duties of the Telecom Regulatory Authority of India (TRAI) on issuing new licenses to service providers.
OTT Regulation
In the draft Bill, telecom services now include internet-based and OTT communication services like WhatsApp calls, Facetime, Google Meet, among others. It fulfills the long-standing request by telecom operators for a balanced playing field. At present, while telecom companies require a licence to offer services, OTT platforms do not.
Provision of Refund
A provision for refund of fees in case a telecom or internet provider surrenders their license has been proposed by the telecom ministry.
Default in Payment by Licensees
The bill suggests that in case of payment default and under extraordinary circumstances, such as financial stress, consumer interest, maintaining competition in the sector, or reliability and continuous supply of telecommunication services, the government can defer the payment, convert a part or all of the amounts payable into shares, write-off payable amounts or provide relief from payment.
In Case of Insolvency
The draft also proposes that if an entity becomes insolvent, the spectrum assigned to them will revert to government control.
Telecommunication Development Fund
A proposal to rename the Universal Service Obligation Fund (USOF) as Telecommunication Development Fund (TDF) is made in the bill. The fund will be utilised to enhance connectivity services in underserved rural, remote, and urban areas.
Present Status of the Telecom Industry in India
As of 2022, the Telecom industry in India stands as the second-largest in the world with a subscriber base of 1.17 billion.
Initiatives
Various initiatives have been taken like PLI Schemes under Atmanirbhar Bharat Abhiyan, large-scale structural and procedural reforms in 2021, Bharat Net Project, and Prime Minister Wi-Fi Access Network Interface (PM-WANI).
Challenges Faced by the Telecom Sector
Indian telecom sector is facing challenges like declining Average Revenue Per User (ARPU), limited spectrum availability, low broadband penetration, fluctuations in the duties on Telecom Equipment.
Over-The-Top Platforms (OTT)
OTT platforms like Netflix, Amazon Prime Video, Hotstar, etc., are audio and video hosting and streaming services.
Way Forward
The telecom sector in India needs to maintain sufficient spectrum and adopt new technologies faster to serve the customers better. The Draft Telecommunication Bill 2022 addresses these challenges and is open for discussion. It is hoped that this would pave the way for a comprehensive policy regarding the future of telecommunications in India.