The landmark Telecommunications Bill, which was passed by Parliament recently, has received the President's assent. 'The Telecommunications Act, 2023' is set to overhaul the country's century-old telecom law to make the sector investor-friendly; it prioritises user protection but also extends powers to the government to intercept communications.
While it excludes from its ambit broadcasting, and over-the-top services such as WhatsApp and Telegram, it cements rules for spectrum allocation and provides for a non-auction route for assigning airwaves for satellite-based communication services. The legislation – which allows the government to temporarily take control of telecom services in the interest of national security – was cleared by the Lok Sabha on December 20, and by Rajya Sabha on December 21.
It supersedes the existing and archaic regulatory framework for the telecommunication sector, based on the Indian Telegraph Act, of 1885, the Wireless Telegraphy Act (1933), and the Telegraph Wires (Unlawful Possession) Act (1950). "The following Act of Parliament received the assent of the President on the 24th December, 2023 and is hereby published for general information…," according to a gazette notification.
The structural reforms envisaged under The Telecommunications Act, 2023 aim to streamline what has so far been a complex licensing system in the telecom sector and instead ushers-in a simple authorisation mechanism. It replaces over 100 types of licences with authorisation focussed on three aspects — providing telecommunication services, operating and expanding telecommunication networks and possessing radio equipment.
"It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the commencement of that provision," it said. The bill has attempted to tighten noose on pesky callers through various means including by checking misuse of sim. Impersonation and acquisition of SIM fraudulently using someone else's identity proof for telecom services will be punishable with imprisonment for a term up to three years and a fine of up to Rs 50 lakh.
It also lays down similar stringent provisions for phone number spoofing for fraud, and moots an "digital-by-design" online grievance redressal mechanism for addressing users' complaints. Telecom operators have been mandated to capture verifiable biometrics data when they issue a new connection.
The Telecommunications Act gives legislative backing to resolve disputes between consumers and telecoms through an online dispute resolution mechanism established by the centre. The proceedings carried out by the online dispute resolution mechanism or outcome will not affect the rights of consumers under the Consumer Protection Act, 2019.
It also addresses issues of continuity of telecom service which may help in cases where a telecom operator for some legal-commercial or technical reason is unable to provide services. The Act paves the way for administrative (non-auction) allocation of spectrum for satellite broadband services. It also has provision to take back unutilised spectrum before the expiry of permit to use it.
"The Central Government may, notwithstanding anything contained in any other law for the time being in force, after providing a reasonable opportunity of being heard to the assignee concerned, determines that any assigned spectrum has remained unutilised for insufficient reasons for such period as may be prescribed, terminate such assignment, or a part of such assignment, or prescribe further terms and conditions relating to spectrum utilisation," the Act says. However, it does not provide for refund of spectrum price paid by entities for its allocation.
Further, the bill brings in a state government-led dispute resolution structure, where the district magistrate and the district judge will decide right of way issues that are related to permits for telecom network roll out. Anyone causing damage to the telecommunication network will be liable for compensation for the damage caused and fine which may extend up to Rs 50 lakh.
"Whoever provides telecommunication services or establishes telecommunication network without authorisation under sub-section (1) of section 3, or causes damage to critical telecommunication infrastructure shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend up to two crore rupees, or with both," it said. The government has brought in procurement of telecom equipment from a trusted source within the new Act, which was earlier being governed through National Security Directive on Telecommunication Sector.
Also, the bill significantly lowers the penalty cap on telecom operators to Rs 5 crore; it was earlier as high as Rs 50 crore in a telecom circle level and Rs 1,100 crore at pan-India level. To ease the legal dispute process, the bill also has a provision for voluntary disclosure of lapses by a telecom company and to correct the mistake by paying applicable penalties.
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