New Delhi, June 26, 2024 – Significant sections of the Telecommunication Act 2023 are now in effect, marking a pivotal shift in India's telecommunications landscape. The Act, which replaces archaic laws like the Indian Telegraph Act of 1885, the Indian Wireless Telegraphy Act of 1933, and The Telegraph Wires (Unlawful Possession) Act of 1950, was passed by Parliament in December last year and received Presidential assent shortly after. However, its implementation was pending until the government issued a formal gazette notification.
Out of the 62 sections in the Act, 39 have now been implemented, introducing measures to curb spam, enhance cybersecurity, regulate telecom equipment, and bolster the telecom infrastructure, among other provisions.
Key Provisions Coming into Effect
1. Power to Notify Standards (Section 19): This section grants the government authority to set standards and conformity measures for telecom equipment, network identifiers, and cybersecurity protocols. It also covers encryption and data processing in telecommunications.
2. Emergency Powers (Section 20): In times of public emergency or to safeguard national security, the government can temporarily take control of telecom networks. It can also intercept or suspend communications to ensure public safety and prevent incitement to offences.
3. Procurement from Trusted Sources (Section 21): For national security reasons, the government can mandate that telecom equipment and services be procured only from trusted sources, especially during conflicts or to maintain friendly foreign relations.
4. Cybersecurity Measures (Section 22): The Act introduces measures for cybersecurity, allowing the government to collect, analyze, and disseminate telecom traffic data to protect telecommunication networks.
5. Digital Bharat Nidhi (Section 24): Renaming the Universal Services Obligation Fund, this section aims to enhance telecom services in underserved areas and support research, development, and pilot projects in telecommunications.
6. Telecom Regulatory Sandbox (Section 27): To foster innovation, the government can establish regulatory sandboxes, providing a controlled environment for developing and testing new telecom technologies and services.
7. Spam Curbing Measures (Section 28): This section introduces robust measures to protect users from unsolicited commercial messages. It includes provisions for user consent, maintaining "Do Not Disturb" registers, and mechanisms to report unwanted messages.
8. Restricting Impersonation (Section 29): Telecom users are prohibited from providing false information or impersonating others while using telecom services. Violations can lead to significant fines and legal consequences.
9. Dispute Resolution Mechanisms (Section 30): The government can establish online dispute resolution mechanisms for telecom-related issues, ensuring users have an accessible and efficient means to resolve conflicts with service providers.
Controversy Over OTT Services
One of the main points of contention is whether over-the-top (OTT) communication services like WhatsApp and Telegram fall under the Act's broad definition of "message." The Act defines a message as “any sign, signal, writing, text, image, sound, video, data stream, intelligence or information sent through telecommunication,” potentially including OTT services. This inclusion would give the government the power to intercept, detain, and suspend online communications. Despite assurances from the then Communications Minister Ashwini Vaishnaw that OTT services are not covered, this was never confirmed in Parliament, leaving ambiguity and concern among service providers and users.
Consumer Impact
Consumers can expect better network coverage, especially in rural areas, due to new infrastructure development facilitated by the Right of Way rules. Additionally, the Digital Bharat Nidhi fund will focus on improving services in remote regions. New rules also limit the number of SIM cards a person can hold, aiming to reduce fraud and misuse.
Business Environment
Telecom companies will benefit from a more predictable regulatory environment, with clearer guidelines and standards. The Act aims to enhance the ease of doing business in the sector, promoting investment and innovation.
Future Implementations
While significant sections are now in effect, others, such as those related to satellite communication services like Elon Musk’s Starlink, remain pending. The full impact of the Telecommunication Act 2023 will unfold as more sections are implemented in the future.
The implementation of these sections marks a major milestone in modernizing India's telecommunication regulations, promising enhanced security, better consumer protection, and a more conducive environment for technological innovation.
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