Mint Explainer: New telecom law gets partially notified. What happens next?

More than half of the 62 sections of the Telecommunications Act, 2023, will kick into effect from Wednesday, 26 June. These non-controversial and non-contentious segments aim to establish a robust legal framework that supports infrastructure development, enhances national security, promotes innovation, and protects consumer interests, thus fostering a conducive environment for business and sectoral growth. What happens to the remaining segments of the Act? Mint explains:

Which sections of the Act will come into effect?

The 39 sections that come into effect on 26 June include definitions that provide clarity to industry and investors on the right of way framework for easier infrastructure installation and regulations for installing common ducts.

One section enables the Centre to take control of any telecom service in the event of an emergency on grounds of security, public order or prevention of offences.

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Rules related to standards for telecom security and innovation, public safety measures and expanding the Universal Service Obligation Fund meant to bring connectivity to areas lacking network coverage will also come into effect, as will an online dispute resolution framework for grievance redressal and consumer protection measures from spam.

The provisions will ensure business continuity as some sections of the older laws will continue until they’re replaced.

Which sections are yet to come into effect?

The law pertaining to the assignment of spectrum outside of auctions. This includes airwaves meant for 19 kinds of services such as satellite broadband, TV broadcast, direct-to-home or DTH, national long-distance calling, maritime and in-flight connectivity services.

Sections regarding harmonisation or re-farming of airwaves, technologically neutral use of spectrum, taking back unutilised airwaves and the sharing, trading, leasing and surrender of assigned spectrum have yet to be notified.

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Contraventions and penalties related to violation of provisions, voluntary disclosures, adjudication and appellate process in case of violation will be notified later. Provisions prohibiting the use of equipment to block services, penalties not affecting other liabilities and allowing non-government individuals to take on the chairmanship of the telecom regulator are yet to be notified.

What is the significance of this Act?

The Telecommunications Act, 2023, will repeal the Indian Telegraph Act, 1885, the Indian Wireless Telegraph Act, 1933, and the Telegraph Wires (Unlawful Possession) Act, 1950, owing to huge technical advancements in the telecom sector and technologies.

The new law provides clarity on definitions and legal frameworks, which reduce ambiguity and uncertainty for stakeholders, thereby improving investor confidence and promoting ease of doing business. The establishment of right of way frameworks, common ducts, and cable corridors supports infrastructure development aligned with the PM Gati Shakti while propagating efficient use of resources.

What does the new Act mean for consumers and businesses?

Consumers can potentially benefit from improved network coverage due to easier infrastructure installation enabled by right of way rules. Service improvement can be expected in underserved areas through the Universal Service Obligation Fund, and importantly, better protection from spam and a system to address public grievances.

For telcos, many redundant laws will be removed, bringing in new ones that are in line with the times and hence will improve the ease of doing business.

However, regulations related to the allotment of spectrum administratively (as opposed to auctioning the airwaves) for satellite broadband will take time to get enacted, thus pushing back the launch plans of Eutelsat Oneweb and Jio Satellite Communications that have regulatory approvals, even as Amazon and Starlink wait for the go-ahead from the government. Without spectrum, these companies cannot launch services.