Business

Regulatory Framework of Telecom Business: Policies, Acts, and Licenses

Companies which have helped in increasing the regulatory framework of telecom business in India includes “Bharti Airtel, BSNL, etc.”

Communication is one of the keys to survival. Technology is growing at it’s best speed. Earlier it was difficult to reach out to people. With the up-gradation of technology, humans are just one click away from each other. Immense growth and development could be seen in the telecom services in India. Both foreign and domestic investors have helped this sector to achieve heights. As per the Indian Brand Equity Foundation with the Telecom Regulatory Authority of India (TRAI), telephone subscribers in India are approximately 1,200,000,000. According to the same sources by the gross revenue of the telecom services in India, dated as on March 31, 2019, was nearly USD 3,400,000,000. These companies have helped in increasing the regulatory framework of telecom business in India.

Regulatory Framework of Telecom Business Authorities of India:

Telecom Authority of India is governed by the ministry of communication and Information Technology of India. It governs several bodies, which are described here under:

  • Department of Telecommunications (DoT)

This Department works under the central government. It has the following responsibilities for the regulatory framework of the telecom services in India:

  1. Granting licenses for several telecom services in india.
  2. Establishing and maintaining the frequency in the department of Radio communication with foreign bodies too.
  3. Establishing and maintaining wireless equipment.
  • Wireless Planning Commission (WPC)

WPC is another department of DoT. It maintains the Frequency Spectrum Management, which includes wireless station licensing and take care of the requirements of all Indian wireless users.

WPC includes some major parts such as “Licensing and Regulation (LR), New Technology Group (NTG), and Standing Advisory Committee on Radio Frequency Allocation (SACFA).”

  • Telecom Regulatory Authority of India (TRAI)

Telecom Regulatory Authority of India is the statutory body set up by the Indian Government. The Ministry of Communication and Information Technology governs the telecom industry in India. It improves the regulatory framework of telecom business in India.

  • Telecom Disputes Settlement and Appellate Tribunal (TDSAT)

TDSAT has the power to solve the disputes between the license granter (DoT) and the licensee for the regulatory framework of telecom business in India. All the disputes regarding the telecom industry will be solved under TDSAT.

Laws for Regulatory Framework of Telecom Business

The Indian Telegraph Act, 1885

This is the veteran act in India and continues to be in effect. It was amended as per the changes in the rules and regulations in the telegraphs of the country. In the Preamble of the Act, telegraph is defined as anything, that incorporates an appliance, instrument, material or apparatus used or capable of use for transmission or reception of signs, signals, writing, images, etc.

Important features of the Act are:

  • It gives Power to the Indian Government to make changes in the Act for the growth of the telecommunication sector.
  • Provision of this act provides power to the Indian Government to grant licenses to private bodies to provide telecommunication services on conditions it considers fit.
  • It empowers the Indian Government to get the information by intercepting the messages for public safety and emergency.
  • Any dispute regarding a telegraphic appliance/ apparatus/ line between the telegraph authority and a licensee (for whose benefit the line, appliance, or apparatus is, or has been provided) shall resolute by an arbitrator appointed by the Central Government.
  • This Act provides the privilege of telecommunications services in India.

The Indian Wireless Telegraphy Act, 1933

This Act has the regulations regarding the possession of wireless telegraphy apparatus. Additionally, any apparatus, appliance, instrument, or material that uses or is capable of use in wireless communication. Any article for the wireless telegraphy, should not be other than the articles mentioned in section 10 of the Act.

As per the Act, any person having the license which was granted by the Indian government for wireless telegraphy apparatus possession allowed for the charging of a penalty if any wireless license is held without a valid license.

The Telecom Regulatory Authority of India Act, 1997

The telecom regulatory authority of India Act, 1997 empowered the TRAI with quasi-judicial authority to adjudicate upon and settle telecom disputes. In 2000, an act was amended to differentiate between the regulatory and recommendatory functions of TRAI which have been discussed above. The jurisdiction of civil courts has been expressly barred in cases where the TDSAT has jurisdiction, one of the amendments made in the act.

The Information Technology Act, 2000

IT Act was formed statutory to help e-commerce. Further, it helped in the digitalization of the documents and signatures as valid authentication of electronic documents. In 2008, the IT Act was amended for focusing on information security, and new sections were added for offenses related to cyber terrorism and data protection. This act provides penalties for several offenses such as “Cybercrime, E-Commerce Frauds like Cheating by Impersonation, And Pornography.”

National Digital Communications Policy, 2018

The reason behind enacting NDCP was digital empowerment and well-being of Indian citizens. It outlines a set of goals, initiatives, strategies, and intended policy outcomes. In the same manner, the vision of the government in NDCP 2018 is to fulfill the needs of citizens. This policy helped the regulatory framework of telecom business in India.

The NDCP 2018 has goals to complete the following Strategic Objectives by 2022:

  • Broadband for All
  • Recruitment of four million in the digital communications sector
  • In 2017, 6% was the contribution of the digital communications sector of India’s GDP which should increase up to 8% in the next term
  • In 2017 India was ranked 134. So the next goal will be propelling India to the Top 50 Nations in the ICT Development Index of ITU
  • India’s contribution to Global Value Chains should increase
  • Digital sovereignty to be ensured

To achieve the above objectives, the NDCP think of the following three missions to the regulatory framework of telecom business in India:

  • To connect India: for creating influential digital communications infrastructure to promote ‘Broadband for All’ in the country and use it as a tool for socio-economic development. Thus, Ensuring the service quality and environmental sustainability
  • To propel India:to enable next-generation technologies and services through investments, innovation, and intellectual property rights (IPR) generation to harness the power of emerging digital technologies, including 5G, and big data to enable the provision of future-ready products and services along with catalyzing the fourth industrial revolution (Industry 4.0) by promoting investments, innovation, and IPR.
  • To secure India:By ensuring independence, security, and safety of digital communications to secure the interests of citizens. Protecting the digital independence of India with a focus on ensuring individual autonomy and choice, data ownership, privacy, and security while recognizing data as a crucial economic resource.

The Broadband Policy 2004

With this policy, the Indian government aims to provide fast internet connectivity with the widest range. The use of Broadband specifically in the following sectors for the regulatory framework of the telecom business in India:

  • Tele-education
  • Tele-medicine
  • E-governance
  • Entertainment
  • Employment generation
  • Every Indian household

Licenses and Authorization

Huge transformations have been witnessed in the licensing process of New Telecom Policy (NTP), 2012 for the regulatory framework of the telecom business in India.  ‘Unified license regime’ is introduced in the NTP which means that ‘one nation, one license’.

Authorization under the unified license (UL) comprises one or more of the following services:

  • access service
  • internet service (and subsequent categories)
  • national long distance (NLD) service
  • international long distance (ILD) service
  • global mobile personal communication by satellite service
  • public mobile radio trunking service
  • very small aperture terminal closed user group service
  • Indian national satellite system mobile satellite system reporting service
  • Resale of international private leased circuit services

Authorization for the regulatory framework of the telecom services in India

  • Entities should incorporate in India.
  • Entities must be compliant with the limits under the FDI regulations for the relevant sector.
  • As prescribed by the central government, applicants will be required to pay the relevant fees and maintain minimum equity and net worth.
  • Applicants are required to furnish a bank guarantee and that prescribes by the relevant authorities.

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