Explore the complex landscape of Telecommunications in India through this blog. Navigate the regulatory waters, examining policies and challenges shaping the telecommunications industry in the country
In the dynamic landscape of Indian telecom business, the Telecom Regulatory Authority of India (TRAI) serves as a crucial arbiter and resolver of disputes, empowered by the Telecom Regulatory Authority of India Act, 1997. An amendment in 2000 further delineated its functions into regulatory and recommendatory domains.
Evolution of Communication:
The evolution of communication has been a remarkable journey, from primitive means like drums and smoke signals to the contemporary era of instant connectivity through optical cables and satellites. With this technological surge, the telecommunication industry has become intricately woven into the fabric of global connectivity.
Historical Perspective:
The inception of telecommunications in India dates back to the era of the British East India Company, introducing telegraph services. Over the years, the industry witnessed significant growth and development, attracting substantial investments from both domestic and foreign entities.
Initially, telecommunications operated as a government monopoly before experiencing liberalization in the early 1990s. This marked the entry of private sector participation, transforming the telecom business landscape in India.
Key Players:
The Indian telecom market is robust, featuring major players that shape the industry’s dynamics:
– BSNL (Bharat Sanchar Nigam Limited): With a legacy dating back to the government monopoly era, BSNL continues to be a key player in the telecom business domain.
– Bharti Airtel: A prominent name in Indian telecommunications, Bharti Airtel has played a pivotal role in the industry’s evolution.
– Vodafone Idea Limited: Resulting from a merger, Vodafone Idea is a significant player in the telecom business sector.
– Reliance Jio Infocomm: Launched in 2016, Reliance Jio quickly disrupted the market with its innovative approach and expansive reach.
Regulatory Framework:
The surge in technological connectivity has brought forth an array of rules and regulations governing the telecommunications sector. TRAI, as the regulatory authority, plays a pivotal role in overseeing and adjudicating disputes within this burgeoning industry.
Indian Telecom Authorities
The Ministry of Communications and Information Technology presides over the telecom industry in India and governs the following bodies:
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Department of Telecommunications (DoT)
The Central Government acts through the DoT to exercise its exclusive privilege of establishing, maintaining and working telegraph and wireless equipment, as well as granting of licences for such activities.
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Wireless Planning Commission (WPC)
The WPC is a wing of the DoT responsible for Frequency Spectrum Management, including the licensing of wireless stations. They are in-charge of catering to the needs of all wireless users in India
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Standing Advisory Committee on Frequency Application (SAFCA)
SAFCA, another wing of the DoT grants approval for radio frequency used by telecom service providers. In addition to a telecom license, an operator requires a NOC from SAFCA to commence their service.
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Telecom Regulatory Authority of India (TRAI)
TRAI is an autonomous statutory body with the sole authority to take binding decisions on the fixation of tariffs for the provision of telecommunications services. TRAI’s recommendations must be considered by the DoT before licensing telecom services.
- Telecom Disputes Settlement and Appellate Tribunal
The TDSAT has been vested with exclusive powers to adjudicate any dispute between the licensor (DoT) and the licensee’; service providers; and service providers and groups of customers.
Telecommunications Laws and Regulations
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The Indian Telegraph Act, 1885
The Indian Telegraph Act is one of the oldest legislations in India which continues to be in effect. As mentioned in the Preamble to the Act, the term telegraph encompasses any appliance, instrument, material or apparatus used or capable of use for transmission or reception of signs, signals, writing, images, and sounds or intelligence of any nature by wire, visual or other electromagnetic emissions, radio waves or Hertzian waves, galvanic, electric or magnetic means.
Notable features of the Act:
- The Indian Telegraph Act, empowers the Government of India to take control of the existing telegraph lines and lay down the necessary infrastructure for further expansion of telecommunications in India.
- Further, it authorizes the Government of India to grant telecom Licences on such conditions and in consideration of such payments as it deems fit, to any person to establish, maintain, or work a telegraph within any part of India.
- It authorizes the GOI to take possession of licensed telegraphs and to order the interception of messages if there is any public emergency or in the interest of public safety.
- Any dispute concerning a telegraphic appliance/ apparatus/ line between the telegraph authority and a licensee (for whose benefit the line, appliance, or apparatus is, or has been provided) shall be determined by arbitration by an arbitrator appointed by the Central Government.
- The Act grants exclusive privilege to provide telecom business services in India.
2. The Indian Wireless Telegraphy Act, 1933
This Act, as the name implies, regulates the possession of wireless telegraphy apparatus. Furthermore, any device, appliance, instrument, or material that uses or is capable of using wireless communication.
Its purview includes any article determined by rule made under Section 10 to be wireless telegraphy apparatus but excludes any such apparatus, appliance, instrument, or material commonly used for other electrical purposes unless it has been specially designed or adapted for wireless communication or forms part of some apparatus, appliance, instrument, or material specially designed or adapted for wireless communication, nor any article determined by rule made under Section 10 not to be wireless telegraphy apparatus.
According to the Act, the possession of wireless telegraphy apparatus by any person can only be allowed when a license is issued by the telecom authority. The Act also provides for the charging of a penalty if any wireless license is held without a valid license.
3. The Telecom Regulatory Authority of India Act, 1997
The Telecom Regulatory Authority of India was established under the Telecom Regulatory Authority of India Act, 1997. It empowered the TRAI, a quasi-judicial authority to adjudicate upon and settle telecom business disputes.
The Act was amended in 2000 to clearly distinguish between the regulatory and recommendatory functions of TRAI. The Amendment also set up the TDSAT, clarifying that the jurisdiction of civil courts has been expressly barred in cases where the TDSAT has jurisdiction.
4. The Information Technology Act, 2000
The Indian Parliament passed the Information Technology Act in 2000 to promote e-commerce. Furthermore, the Act legally recognises electronic documents and digital signatures as valid electronic document authentication.
The Information Technology Amendment Act of 2008 emphasised information security, adding several new sections on offences such as cyber terrorism and data protection. It imposes penalties for a variety of offences, including cybercrime, e-commerce frauds such as impersonation, and pornography.
5. National Digital Communications Policy, 2018
The National Digital Communications Policy (NDCP) was enacted with the goal of digital empowerment and Indian citizens’ well-being in mind; it outlines a set of goals, initiatives, strategies, and intended policy outcomes. Similarly, the government’s vision in the NDCP 2018 is to meet the needs of citizens. Furthermore, enterprises are to support India’s transformation to a digitally empowered society by establishing secure and affordable digital communication infrastructure and services.
6. The Broadband Policy 2004
This policy arose as a product of the economic reforms implemented by the Government to align the country’s economy with the world economy. Here, the Government focuses on fast Internet connectivity with a wider reach. The policy even offers a wide range of fiscal incentives and tax rebates to both domestic and foreign investors.
Licences and Authorisation
The New Telecom Policy (NTP) of 2012 marked a paradigm shift in the licensing regime for the telecom sector in India. Embracing the vision of ‘one nation, one license,’ the policy introduced the ‘unified license regime,’ streamlining the process for industry players. This transition consolidated the need for separate licenses into a single unified license, covering a spectrum of telecom services.
Requirements for Authorisation
Under the unified license, entities can engage in various services encompassing fixed, mobile, and satellite communications, catering to both wireline and wireless media. To obtain authorisation under this regime, entities must adhere to specific requirements:
- **Incorporation in India:** Applicants must be incorporated in India to be eligible for authorisation.
- **FDI Compliance:** Compliance with Foreign Direct Investment (FDI) regulations for the relevant sector is a prerequisite.
- **Financial Criteria:** Applicants need to pay relevant fees and maintain minimum equity and net worth as prescribed by the Central Government.
- **Bank Guarantee:** Furnishing a bank guarantee as specified by the relevant authorities is mandatory.
The unified license encompasses a range of services, allowing entities flexibility in their telecom operations. These services include:
– Access Service
– Internet Service (and Subsequent Categories)
– National Long Distance (NLD) Service
– International Long Distance (ILD) Service
– Global Mobile Personal Communication by Satellite Service
– Public Mobile Radio Trunking Service
– Very Small Aperture Terminal Closed User Group Service
– Indian National Satellite System Mobile Satellite System Reporting Service
– Resale of International Private Leased Circuit Service
Conclusion:
The unified license framework represents a significant leap in simplifying the licensing landscape for the telecom sector in India. By offering a comprehensive approach and consolidating diverse services under a single license, the regulatory framework aims to foster a more efficient and streamlined environment for telecom operators, ultimately contributing to the growth and dynamism of the industry.
