The draft Indian Telecommunication Bill, 2022.

News Highlight

The Department of Telecommunications (DoT) issued the draft Indian Telecommunication Bill, 2022.

Key Takeaway

• The proposed bill aims to change how the telecom sector is governed, primarily by giving the Centre more powers.
• Through this bill, the Centre aims to consolidate and amend the existing laws governing the provision, development, expansion and operation of telecommunication services, telecom networks and infrastructure, in addition to the spectrum assignment.

Features of the bill.

• Consolidation of existing laws:
  • The bill consolidates three separate acts that govern the telecommunications sector:
    • Indian Telegraph Act 1885.
    • Indian Wireless Telegraphy Act 1933.
    • The Telegraph Wires (Unlawful Protection) Act 1950.
• Widening the communication services:
  • One of the fundamental changes is the inclusion of new-age over-the-top communication services like WhatsApp, Signal and Telegram in the definition of telecommunication services.
• Expansion of the licensing regime:
  • As per the draft law, providers of telecommunication services will be covered under the licensing regime and will be subjected to similar rules as other telecom operators. 
  • The laws proposed under the Bill will regulate communication services, including voice, video, and data offered by over-the-top platforms such as Whatsapp, making it mandatory for them to obtain a licence from the government to operate like other telecom operators.
• Amend the TRAI Act:
  • The draft bill is looking to amend the Telecom Regulatory Authority of India Act (TRAI Act). The TRAI is the watchdog of the telecommunication sector in India. 
  • The current TRAI Act mandates the telecom department to seek the regulator’s views before issuing a new licence to a service provider. The proposed Bill does away with this provision. 
• Simplify mergers and acquisitions:
  • The bill proposes simplifying the framework for mergers and acquisitions, demergers and acquisitions, or other forms of restructuring “by only requiring intimation to the licensing authority,”.
• Telecommunication Development Fund:
  • The draft Bill also proposes to change the name of the Universal Service Obligation Fund (USOF) to the Telecommunication Development Fund (TDF). 
  • The amount received under USOF comes from the annual revenue of telecom services providers. The amount received under the TDF will be credited to the Consolidated Fund of India and utilised to boost connectivity services in underserved areas in India.

Telecom Regulatory Authority of India (TRAI)

• It was established in 1997 by the Telecom Regulatory Authority of India Act, 1997.
• Its mission is to create and nurture conditions for the growth of telecommunications in the country.
• TRAI regulates telecom services, including fixation/revision of tariffs for telecom services which were earlier vested in the Central Government.
• The head office of the Telecom Regulatory Authority of India (TRAI) is located in New Delhi.
• Composition:
  • The TRAI consists of a chairperson, two whole-time members and two part-time members, all appointed by the Government of India.
  • The Chairperson and other members shall hold their office for three years or till the age of 65, whichever is earlier.
  • The Central Government is empowered to remove any member of the TRAI.

Pic Courtesy: istock

Content Source: The Indian Express

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