Telecommunications Act Pits Telecoms & OTTs Against Each Other
Aug. 21, 2024

Why in the News?

Telecom operators and social media companies are in conflict over the interpretation of the new Telecommunication Act. Telecom operators are arguing that over-the-top (OTT) communication platforms like WhatsApp and Google Meet should be classified as telecom services under the Act.

What’s in Today’s Article?

  • Telecommunications Act, 2023 (Objective, Key Features, Issues, etc.)
  • Telecommunications Act Pits Telecoms & OTTs Against Each Other

About Telecommunications Act, 2023:

  • Earlier, the Indian Telecommunications sector was governed by three separate Acts of Parliament:
    • Indian Telegraph Act 1885,
    • Indian Wireless Telegraphy Act 1933,
    • Telegraph Wires, (Unlawful Protection) Act 1950
  • The Telecommunications Act, 2023 was brought in to consolidate these three separate Acts.
  • Aim: To amend the existing laws governing the provision, development, expansion and operation of telecommunication services, telecom networks and infrastructure, in addition to assignment of spectrum.

Key Features of Telecommunications Act, 2023:

  • Authorisation for telecom-related activities:
    • Prior authorisation from the central government will be required to:
      • (i) provide telecommunication services,
      • (ii) establish, operate, maintain, or expand telecommunications networks, or
      • (iii) possess radio equipment.
  • Assignment of spectrum:          
    • Spectrum will be assigned by auction, except for specified uses, where it will be allocated on an administrative basis.
    • Specified purposes include: (i) national security and defence, (ii) disaster management, (iii) weather forecasting, (iv) transport, (v) satellite services such as DTH and satellite telephony, and (vi) BSNL, MTNL, and public broadcasting services.
  • Powers of interception and search:
    • Messages or a class of messages between two or more persons may be intercepted, monitored, or blocked on certain grounds.
    • Such actions must be necessary or expedient in the interest of public safety or public emergency, and must be in the interest of specified grounds.
    • Telecom services may be suspended on similar grounds.
    • An officer authorised by the government may search premises or vehicles for possession of unauthorised telecom network or equipment.
  • Protection of users:
    • The central government may provide for measures to protect users which include:
      • (i) prior consent to receive specified messages such as advertising messages,
      • (ii) creation of Do Not Disturb registers, and
      • (iii) a mechanism to allow users to report malware or specified messages.
    • Entities providing telecom services must establish an online mechanism for registration and redressal of grievances.
  • Right of way:
    • Entities laying telecommunication infrastructure may seek right of way over public or private property.
    • Right of way must be provided on a non-discriminatory and non-exclusive basis to the extent possible.
  • Appointments to TRAI:
    • The Act amends the TRAI Act to also allow individuals with: (i) at least 30 years of professional experience to serve as the Chairperson, and (ii) at least 25 years of professional experience to serve as members.
  • Digital Bharat Nidhi:
    • The Universal Service Obligation Fund has been established under the Indian Telegraph Act, 1885 to provide for telecom services in underserved areas.
    • The Act retains this provision, renames the fund as Digital Bharat Nidhi, and also allows its use for research and development in telecom.
  • Offences and penalties:
    • The Act specifies various criminal and civil offences.
    • Providing telecom services without authorisation, or gaining unauthorised access to a telecom network or data, are punishable with imprisonment up to three years, a fine up to two crore rupees, or both.
    • Breaching terms and conditions of authorisation is punishable with a civil penalty of up to five crore rupees.
    • Possessing unauthorised equipment, or using unauthorised network or service, is punishable with a penalty of up to ten lakh rupees.
  • Adjudication process:
    • The central government will appoint an adjudicating officer to conduct inquiries and pass orders against civil offences under the Act.
    • The officer must be of the rank of joint secretary and above.

Key Issues with the Act:

  • Interception of communication:
    • The Act provides that any message or class of messages between two or more persons may be intercepted, monitored, or blocked on specified grounds.
    • Such grounds include:
      • (i) the interest of the security of the state,
      • (ii) friendly relations with other countries,
      • (iii) public order, or
      • (iv) prevention of incitement of offences.
    • Telecom services may be suspended on similar grounds (e.g., internet shutdown).
  • The Act allows mass surveillance:
    • The Act provides that any message or class of messages between two or more persons, or relating to any particular subject, may be subject to interception, monitoring, or blocking.
    • These actions will be subject to procedure and safeguards prescribed by the central government.
    • Using these grounds, an order may be made to intercept or monitor all communication where a particular word or set of words is used.
    • Such an order would require all communication of all users to be monitored.
    • Hence, this raises the question whether such actions could be considered proportionate to the objective.
  • Safeguards with regard to the power of search and seizure not specified:
    • The Act allows any officer authorised by the central government to search a premise or vehicle on specified grounds.
    • The officer must have reason to believe that unauthorised telecommunications equipment or network used to commit an offence is kept or concealed.
    • The officer may also take possession of such equipment or network.
    • The Act neither specifies the procedure and safeguards against such actions, nor provides that such safeguards will be prescribed.
  • Need for biometric verification:
    • The Act provides that telecom service providers must verify the identity of their users through any verifiable biometric-based identification.
    • This requirement may not be proportionate, and may infringe upon the fundamental right to privacy.

Telecommunications Act Pits Telecoms & OTTs Against Each Other:

  • Telecom operators and social media companies are in dispute over the interpretation of the new Telecommunication Act.
  • Telecom companies argue that over-the-top (OTT) communication platforms like WhatsApp and Google Meet should be classified as telecom services, requiring government licensing, just like traditional telecom services.
  • Despite the government's earlier clarification that OTT platforms do not fall under this definition, the telecom operators maintain their stance, citing the broad definition of telecom services in the Act.
  • This ongoing debate highlights the ambiguity in the Act's language and the differing interpretations by stakeholders.