“New Law for New India.”
New Delhi : The much-anticipated Telecommunications Bill, recently greenlit by Parliament, has secured the crucial assent from the President. Dubbed ‘The Telecommunications Act, 2023,’ this legislation is poised to revolutionize the country’s century-old telecom law, emphasizing investor-friendly measures while placing a high premium on user protection. Simultaneously, it grants the government expanded powers to intercept communications.
The scope of the Act excludes broadcasting and over-the-top services like WhatsApp and Telegram. It enshrines rules for spectrum allocation, introducing a non-auction route for assigning airwaves dedicated to satellite-based communication services. Cleared by the Lok Sabha on December 20 and the Rajya Sabha on December 21, the legislation supersedes the outdated regulatory framework based on the Indian Telegraph Act of 1885, the Wireless Telegraphy Act (1933), and the Telegraph Wires (Unlawful Possession) Act (1950).
According to a gazette notification, “The following Act of Parliament received the assent of the President on the 24th December, 2023 and is hereby published for general information.”
The structural reforms outlined in The Telecommunications Act, 2023 aim to simplify the complex licensing system prevalent in the telecom sector, introducing a streamlined authorization mechanism. It replaces over 100 types of licenses with a focus on three key aspects: providing telecommunication services, operating and expanding telecommunication networks, and possessing radio equipment.
The Act, scheduled to come into force on a date specified by the Central Government, introduces stringent measures to curb pesky callers, including measures to prevent SIM misuse. The bill proposes imprisonment for up to three years and a fine of up to Rs 50 lakh for impersonation and fraudulent acquisition of SIM using someone else’s identity proof.
Notably, it mandates verifiable biometrics data capture by telecom operators when issuing new connections. The Act also incorporates a digital-centric online grievance redressal mechanism for user complaints and gives legislative backing to an online dispute resolution mechanism for resolving consumer-telecom disputes.
Addressing issues of telecom service continuity, the Act introduces administrative (non-auction) allocation of spectrum for satellite broadband services. It outlines provisions for taking back unutilized spectrum before the permit’s expiry, with no provision for a refund of the spectrum price.
The Act also introduces a state government-led dispute resolution structure, involving the district magistrate and district judge in right-of-way issues related to telecom network rollouts. Damaging telecommunication networks can incur hefty fines and compensation up to Rs 50 lakh.
Moreover, the Act brings telecom equipment procurement under its purview, aligning it with the National Security Directive on the Telecommunication Sector. It significantly reduces the penalty cap on telecom operators to Rs 5 crore, easing legal dispute processes by allowing voluntary disclosure of lapses with the option to correct mistakes by paying applicable penalties.
