Highlights

  • The Telecom Bill empowers the government, and excludes OTT apps from regulations.
  • Administrative spectrum allocation bypasses auctions, benefiting major telecom players.

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The new bill, if passed, could give the government the power to waive off entry fees, license fee, penalty, etc. to ensure competition in the market, availability or continuity of telecom networks apart from national security reasons. 

Telecommunications bill, 2023 introduced in Lok Sabha by minister Ashwini Vaishnaw

Union Communications Minister Ashwini Vaishnaw introduced the Telecommunications Bill, 2023, in Lok Sabha signalling a transformative shift in governing India's telecom sector. This bill, once enacted, will empower the government with authority over telecom services for national security concerns, replacing the Indian Telegraph Act that has been in force for 138 years.

A crucial provision in the proposed bill is the exclusion of over-the-top (OTT) applications, like WhatsApp and Telegram, from the realm of regulated telecom services. The exclusion aims to delineate these platforms from conventional telecom regulations, safeguarding their autonomy.

Previously endorsed by the Cabinet in August this year, the draft Telecommunications Bill, 2023 emphasizes the need to assimilate OTT apps into the telecom framework to bolster user safety. It delineates protocols for government intervention during public emergencies or disaster management, enabling temporary takeover of telecommunication networks if deemed imperative for public welfare.

Should this bill pass, it carries provisions enabling the government to waive entry fees, penalties, and license fees, stimulating market competitiveness and ensuring uninterrupted telecom services, apart from bolstering national security. Furthermore, proposed relaxations in regulations, such as fee refunds upon permit surrender, are part of the bill's framework.

Of particular interest is the proposed bypassing of auctions in administrative spectrum allocation, potentially expediting service launches. This move could significantly benefit industry giants like Reliance Jio, Bharti Airtel's OneWeb, and Elon Musk's Starlink, aligning with their expansion strategies.

However, disruptions ensued in the lower house due to Opposition MPs' protests demanding a statement from Union Home Minister Amit Shah concerning the recent Parliament security breach. Consequently, the House witnessed adjournments on two occasions amid these ongoing contentious discussions.

Also Watch: India's Telecom sector surges: ₹2,419 cr investment, 17,753 jobs boosted under PLI scheme

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