The Department of Telecommunications released a consultation paper on ‘Need for a new legal framework governing telecommunication in India’.15 The Department observed that the current laws were enacted long before India’s independence. In light of the evolution in technology, stakeholders have highlighted the need to update the legal framework. Key proposals under the consultation paper include: ▪
1- Scheme of extant laws: Under the Indian Telegraph Act, 1885, the central government has the exclusive privilege to establish and maintain telecommunication. It may grant a license to other entities to carry out these activities. Further, the Indian Wireless Telegraphy Act, 1933 requires a license to possess wireless communication apparatus. The consultation paper noted that the exclusive privilege of government in case of telecom is well recognised under various jurisdictions. A new law should build upon the same basic framework. The law should enable the central government to prescribe standards. It should address the requirements for public safety, public emergency, and national security.
2- Spectrum management: The consultation paper proposes to provide for spectrum management under the new law. It noted that currently, spectrum management is done through a combination of policies and court orders. As a result, there is a need to bring regulatory clarity on this subject.
3- Right of Way: Effective right of way is a key requirement for establishing telecom network. Hence, the new law should provide for the regulation of the right of way and dispute resolution relating to it.
4 ▪ Universal Service Obligation Fund (USOF): USOF has been set up under the Telegraph Act to provide access to quality information and communication technology services to people in rural and remote areas. The consultation paper proposes to expand its scope to include research and development, and promotion of employment and training activities.
5▪ Company affairs: The new law should address issues of continuity of service, and utilisation of unutilised spectrum in the event of insolvency of telecom companies (where a company is unable to repay its debt). Further, it should simplify the process for mergers and acquisitions in the sector.
Comments are invited until August 25, 2022.
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