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The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of.The government's introduction of the Telecom Bill 2023 has sparked significant reactions from various quarters. While the industry has embraced the initiative, civil rights organisations have voiced concerns.
This bill aims to replace the archaic Indian Telegraph Act of 1885, the Indian Wireless Telegraphy Act of 1933 and the Telegraph Wires (Unlawful Possession) Act of 1950. Additionally, it proposes amendments to the Telecom Regulatory Authority of India (TRAI) Act of 1997 without diminishing TRAI's authority.
One notable positive aspect the industry acknowledges is the streamlining of the telecom licensing process and increased transparency regarding spectrum availability. The new legislation is expected to expedite the rollout of 5G services by providing legal support for the right of way (ROW) rules.
A significant aspect of the bill lies in replacing the licensing framework with 'authorisations'. Telecom operators and service providers must obtain these authorisations from the relevant authorities. Spectrum allocation will primarily be conducted through auctions, with administrative allotments reserved for satellite TV and broadband. The legislation also introduces predictability regarding the surrender of unused spectrum.
It's worth noting that the bill does not cover Over-The-Top (OTT) service providers such as WhatsApp, Signal, and Telegram. The legislation designates telecom as 'critical infrastructure' and imposes penalties on those who cause harm to it. Users are assigned specific responsibilities, with consumer protection provisions requiring prior consent for receiving certain categories of messages. Violations of these regulations will result in penalties and imprisonment.
Civil rights groups have expressed dissatisfaction with the central government's complete control over the telecom network. The central government can authorise Internet shutdowns, and message transmission can be halted in public emergencies.
While the final bill is likely to face scrutiny, with dissenting opinions, there is consensus that it will contribute to fortifying the country's telecom infrastructure. Gopal Vittal, the CEO of Bharti Airtel, aptly summarises that the bill ensures predictability and spectrum availability and aids in expanding telecom penetration in the nation.
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