The Telecommunications Act, 2023

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Introduction

Telecommunication is one of the most important and fastest-growing sectors in the world. In this modern business world, it is addressed as one of the most important forms of communication, acting as the foundation of operations in almost every organization. The  Indian telecom sector is the second largest in the world and is a major contributor to the country’s economic growth. The primary benefits of telecommunications are better communication, collaborative work, flexibility, improved customer experience, and enhanced productivity as well as efficiency. Initially, the Indian telecom sector was governed by three laws, the Indian Telegraph Act, 1885, the Indian Wireless Telegraphy Act, 1933, and the Telegraph Wires (Unlawful Possession) Act, 1950. The Telecommunication sector in India is regulated by the government body known as the Telecom Regulatory Authority of India (TRAI). Over the years, these laws have undergone various amendments to cope with the technological advancements and needs of the digitalized era. Since the era of the telegraph, technologies have encountered huge changes; therefore, to fulfill the requirements of the digital world, there is a need to restructure the legal framework for the telecom industry. Concerning this, Mr. Ashwini Vaishnaw introduced the Telecommunications Bill, 2023 on December 18, 2023, with an aim to replace the Indian Telegraph Act 1885 and the Indian Wireless Telegraphy Act, 1933. This article discusses key provisions and changes introduced by the enactment of the Telecommunications Act, 2023.

The Telecommunications Act, 2023

The Telecommunications Bill 2023 was introduced by Ashwini Vaishnaw, an Indian Politician and former IAS officer on December 18, 2023, in the Lok Sabha. Mr. Ashwini Vaishnaw is currently serving as the 2nd Electronics & Information Technology Minister, 39th Minister of Railways, and 55th Communications Minister in the Government of India since 2021. Also, he has been a member of the Rajya Sabha since 2019 representing Odisha. On 20 December 2023, the Lok Sabha passed the Telecommunications Bill, 2023. Further, on December 21, 2023, the Rajya Sabha passed the Telecommunications Bill 2023 and the same received the assent of President of India Droupadi Murmu on December 24, 2023. After receiving the President’s assent, the Telecommunications Bill, 2023 is known as ‘The Telecommunications Act, 2023’. The main objective of this Act is “to amend and consolidate the law relating to development, expansion, and operation of telecommunication services and telecommunication networks; assignment of spectrum; and for matters connected therewith or incidental thereto.” Let us understand the important provisions of the Telecommunications Act, 2023.

Key Provisions and Changes

The new law ‘The Telecommunications Act, 2023’ has 62 Sections and XI Chapters. As discussed earlier, this Act was introduced to replace the existing two telegraph laws so as to provide a new regulatory framework for the Indian Telecommunication industry. Despite the fact that communication technology has evolved to a greater extent over the years by facilitating real-time transmission of information in various forms such as voice, video, text, and images, there are certain areas including security and authorization that need transformation. Below are some of the key provisions proposed with the introduction of the Telecommunications Act, 2023 (the Act, 2023).

• Section 3 of the Telecommunications Act, 2023, illustrates powers of ‘authorization’ which means prior authorization from the Central Government has to be obtained for providing telecommunication services. The broader view illustrates that “Any person intending to (i) provide telecommunication services; (ii) establish, operate, maintain or expand telecommunication network; or (iii) possess radio equipment, shall obtain an authorization from the Central Government, subject to such terms and conditions, including fees and charges, as may be prescribed.” 
• The law allows the assignment of spectrum for telecommunication through auction, except for certain entries including national security and defence, public broadcasting services, law enforcement and crime prevention, disaster management, transport systems, weather forecasting, satellite-based services, BSNL and MTNL, and others. The Central Government should assign the spectrum as well as it can prescribe terms and conditions such as frequency range, feeds and charges, duration, methodology for pricing, etc., as may be applicable for the assignment of the spectrum. Section 4 of the Act, 2023, deals with the ‘Assignment of spectrum’. 
• Section 11 of the Act, 2023 deals with ‘Right of way for telecommunication network in public property’ stating that “Any facility provider may submit an application to a public entity under whose ownership, control or management, the public property is vested, to seek permissions for right of way for telecommunication network under, over, along, across, in or upon such public property.” The Act also states that any individuals who provide the Right of way should “ensure grant of right of way to the facility provider in a non-discriminatory manner and, as far as practicable, on a non-exclusive basis.” 
• Section 24, Section 25, and Section 26 deal with the ‘Digital Bharat Nidhi’. The law retains the Universal Service Obligation Fund (USOF) created under the Indian Telegraph Act, 1885 as the ‘Digital Bharat Nidhi’. It helps in delivering telecommunication services in underserved rural, urban, and remote areas. Moreover, the funds received towards the ‘Digital Bharat Nidhi’ can be used for research and development of telecommunication services, products, and technologies. 
• The law ensures that appropriate measures are provided for the protection of users. As per Section 28(2) of the Telecommunications Act, 2023, “The Central Government may by rules provide for measures for the protection of users, in consonance with any regulations notified by the Telecom Regulatory Authority of India from time to time.” The measures may include prior consent of users for receiving certain specified messages such as any message offering, adverting, or promoting goods, services, interest in property, employment opportunity, business opportunity or investment opportunity (Section 28(1)), preparation and maintenance of Do Not Disturb registers, and a mechanism to enable users to report any malware. 
• Another important provision of this law is that it defines punishments for certain offences. Chapter IX of the Telecommunications Act, 2023 deals with offences and penalties. General provision relating to offence as per Section 42(1) states that “Whoever provides telecommunication services or establishes telecommunication network without authorization…or causes damage to critical telecommunication infrastructure shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend up to two crore rupees, or with both.”
• Section 59 of the Telecommunications Act, 2023, amends certain provisions of the TRAI Act. One such amendment is to allow persons with at least 30 years and 25 years of professional experience to serve as the Chairperson and members respectively. 

Moreover, the Telecommunications Act, 2023, also provides provisions related to the adjudication process, national security and protection of telecommunication networks, power of the Central Government to make rules, powers of interception by the Government, and others.  

Conclusion

The Telecommunications Act, 2023 aims to usher towards the new and modernized telecom industry by embracing the new challenges raised by it. The appropriate implementation and monitoring  of the Act will provide excellent results in the realm of telecommunication. Overall, the provisions of the Act, 2023 restructure the legal framework for dealing with matters related to telecommunication.