Editorial: Throwback to licence-permit raj

Even before its introduction in Parliament, the draft Indian Telecommunication Bill 2022, replacing the colonial-era Act, has raised concerns over intrusive regulatory regime, data security and privacy. For a country that hopes to create a vibrant digital economy, formulating a law that would require every app developer on the internet to obtain a government licence […]

Even before its introduction in Parliament, the draft Indian Telecommunication Bill 2022, replacing the colonial-era Act, has raised concerns over intrusive regulatory regime, data security and privacy. For a country that hopes to create a vibrant digital economy, formulating a law that would require every app developer on the internet to obtain a government licence would amount to throttling innovation. The draft Bill seeks to consolidate three separate Acts that govern the telecommunications sector — Indian Telegraph Act, 1885, Indian Wireless Telegraphy Act, 1933, and The Telegraph Wires, (Unlawful Protection) Act, 1950. With a subscriber base of over 117 crore and accounting for nearly 8% of the country’s GDP, the telecommunication sector certainly deserves a legal framework attuned to the realities of the 21st century. The government intends to broaden the definition of ‘telecom services’ by including OTT (over the top), Internet-based and satellite-based communication services within its purview. The implication is that social media apps such as WhatsApp, Signal and Telegram, which provide calling and messaging services, may require licences to operate. It is the restrictive and preventive measures that require a thorough debate among the stakeholders. What is alarming is that the Centre is trying to apportion to itself sweeping powers to regulate the digital world. The government will have the power to terminate spectrum allocations partly or in full, if it determines that the assigned spectrum has remained unutilised for insufficient reasons over a period of time. 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.

Another key factor is the prospect of OTT service providers, once they become licensed entities, having to share their revenue with the government, even as there is a proposal to waive their fees and penalty. Parting with a sizable portion of their revenues and subjecting themselves to regulation and scrutiny will be the twin challenges for the big tech players. The focus should be on fine-tuning the law judiciously to protect privacy while generating revenue for the government. One more area of concern in the draft Bill pertains to the ‘right of way’ (RoW) enforceable at the State and at the municipal corporation level. This legal framework becomes key to the rollout of 5G services. It lays down a mechanism in which a public entity that owns the land has to grant ‘right of way’ permission expeditiously, unless it gives a substantive ground for refusal. The Centre cannot take coercive action against States or municipal corporations to impose ‘right of way’ rules, as land is a state subject. There are also fears that the new legislation could adversely impact the consultative role of the Telecom Regulatory Authority of India (TRAI), weakening its position. It excludes the obligation of the government to consult TRAI on licensing issues.

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