The Department of Telecom (DoT) has recently brought up concerns surrounding Indian International Long-Distance Operators (ILDOs) without ownership stakes in submarine cable systems. These operators are requesting permissions to lay and maintain submarine cables in India. This development has led the Telecom Regulatory Authority of India (TRAI) to release recommendations on the “Licensing Framework and Regulatory Mechanism for Submarine Cable Landing in India”.
TRAI’s Recommendations: Two Categories of CLS
TRAI has suggested amendments to the ILD/ISP-A (international long distance/Internet service provider Category A) licenses. This amendment would involve the inclusion of two new categories of Cable Landing Station (CLS) locations — namely, Main CLS and CLS “point of presence”. The mandate for the Main CLS facility would involve seeking all necessary approvals for an international submarine cable (SMC) landing into India. Meanwhile, a CLS ‘point of presence’ would need to allow lawful interception and fulfill the requisite security protocols.
Submarine Cable Operations: Critical and Essential Service
TRAI proposes that submarine cable operations should be identified as critical and essential services. This is due to their important role in maintaining smooth national and international communication networks. In order to facilitate these operations, they should be given the highest level of importance when it comes to obtaining necessary permissions and security clearances.
Proposed Legislative Amendment
There is a proposed addition of a section on “Submarine cable” and “Cable Landing Station” in the forthcoming Indian Telecommunication Bill, 2022. This will provide legal and regulatory support, contributing to the growth and robustness of the digital communications sector.
Exemptions for Custom Duty and GST
TRAI has recommended that goods and items required for CLS and submarine cable operation and maintenance should be exempted from custom duty and GST. This will address major challenges in the sector, especially those pertaining to cable repair and maintenance.
Significance of the Recommendations
The recommendations by TRAI could unlock the full potential of cross-border data flow, fuel innovation, and consolidate India’s position as a leading player in data handling. Requiring Indian-owned vessels for undersea cable maintenance could reduce delays and decrease reliance on foreign providers for repairing subsea cables.
What is a Submarine Communications Cable?
A Submarine Communications Cable is a cable laid on the seabed between land-based stations tasked with transmitting telecommunication signals across large stretches of ocean and sea. Modern submarine cables utilize fiber-optic technology, encasing optical fiber elements in plastic layers and containing them in a protective tube suitable for underwater deployment.
Significance of Submarine Communications Cables
Submarine cables are more reliable, cost efficient, and have larger capacity compared to satellite internet connections. Some examples of submarine cable systems include the MIST Submarine Cable System that connects India with Myanmar, Thailand, Malaysia, and Singapore, and Reliance Jio Infocomm’s India Asia Xpress which spans India to the Maldives, Singapore, Sri Lanka, and Thailand. Other examples are the India Europe Xpress (IEX) from India to Italy via Saudi and Greece, the SeaMeWe-6 project from Singapore to France via India, Bangladesh, Maldives, and the Africa2 Cable connecting India with the UK via multiple African countries.
