Telecommunications Act and OTT

About Telecommunications Act, 2023:

• Objective:
  • Modernize and unify laws for the development, expansion, and operation of telecommunication services and networks.
  • Address spectrum assignment and related matters.
• Replacement of old laws: Supersedes the Indian Telegraph Act, 1885, and the Indian Wireless Telegraph Act, 1933, due to advancements in telecom technology.
• Digital implementation: Promotes digital frameworks, including online dispute resolution.
• Guiding principles:
  • Inclusion (Samavesh)
  • Security (Suraksha)
  • Growth (Vriddhi)
  • Responsiveness (Tvarit)
• Key features:
  • Clear definitions: It reduces uncertainties and boosts investor confidence, aiding ease of doing business.
  • Right of Way (RoW) framework: Applies to public and private properties, including government agencies, local bodies, and PPP projects like airports, seaports, and highways. Public entities must grant RoW permission promptly unless there are substantive grounds for refusal.
  • Telecommunication infrastructure: Considered separate from the property it is on, reducing disputes during property transactions.
  • Common ducts and cable corridors: Central Government to establish these in line with the PM Gati Shakti vision.
  • Standards and conformity assessments: Sets standards for telecommunication services, networks, and security to ensure national security and promote Indian technology.
  • Universal service obligation fund: Expanded to support services in underserved areas and fund R&D in telecom services and technologies.
• Definition in the act: The Act defines telecom services as the "transmission, emission or reception of any messages, by wire, radio, optical or other electromagnetic systems."
  • Messages are broadly defined to include "any sign, signal, writing, text, image, sound, video, data stream, intelligence or information."
• Telecom operators' interpretation: Telecom operators argue that OTT platforms fall under the definition of telecom services and should require licensing like traditional telecom services.
  • The Cellular Operators Association of India (COAI) has stated that OTT communication services should be included under Access Services authorization to ensure a level playing field.
• Government's initial clarification: The government had earlier clarified that OTT platforms do not fall under the definition of telecom services, as per former telecom minister Ashwini Vaishnaw.
  • However, this statement was made to the media and is not legally binding.
• Current dispute:
  • Despite the government's earlier clarification, telecom companies maintain that OTT platforms should be regulated under the Telecom Act.
  • TRAI is currently holding consultations on service authorizations, with telecom companies and tech companies presenting opposing views.
• Opposition from tech companies:
  • Tech companies, represented by the Broadband India Forum (BIF), argue that requiring OTT platforms to obtain telecom licenses would stifle competition, innovation, and consumer choice.
  • They believe that this could create an unfair market advantage for certain entities.
• Potential implications:
  • The outcome of this dispute could redefine market dynamics, regulatory frameworks, and the competitive landscape in India's digital communication sector.

About Telecom Regulatory Authority of India (TRAI)

• Establishment: Created by the Telecom Regulatory Authority of India Act, 1997.
• Mission: To foster growth in the telecommunications sector, positioning India as a key player in the global information society.
• Objectives:
  • Regulation of telecom services: Oversees the regulation of telecom services, including the fixation and revision of tariffs, which were previously managed by the Central Government.
  • Fair competition: Aims to provide a transparent policy environment that promotes fair competition and a level playing field among service providers.
  • Regulations and directives: Issues regulations, orders, and directives to address various issues in the telecom sector.