The Telecom Bill, which was introduced by the government in the Lok Sabha on Monday, puts the industry in sync with contemporary needs by clearing a number of ambiguities that often slowed the pace of transformation in the telecommunications regulatory framework. Once the Bill is passed by Parliament, it will replace the century-old Indian Telegraph Act, 1885, as well as the Indian Wireless Telegraphy Act, 1933. By moving away from licence—the term does not figure in the Bill—to authorisation, the government has basically retained flexibility in bringing about changes in the sector, which needs to respond fast to emerging technologies. It is in this direction that, for the first time, the Bill clearly delineates areas where spectrum needs to allocated through auctions and where through an administrative process. By putting some 19 areas including satellite communication services in Schedule 1, where spectrum will be assigned administratively, the ghost of 2G spectrum has officially been buried. No longer can officials or lobby groups come up with a slanted interpretation of the Supreme Court’s 2012 judgment that spectrum for all kinds of services need to be auctioned.
The second area where the air has been cleared is regarding OTT services. The Bill has done well by keeping these services out of the ambit of regulation, thus ending the misleading call for one-service, one-rule. It is wrong to assume that OTTs—communication-related or entertainment-led—are not regulated. They are very much under regulation, but by rules that are administered by other ministries like MeitY and I&B. Further, the Bill authorises the government to bring OTTs under any form of regulation it deems fit, if a need arises in future. This is a pragmatic and flexible approach, very much required in the field of digital technology.
Further, the absence of specific provisions for Vodafone-Idea kind of revival package for financial restructuring of distressed operators will ensure that telcos manage their affairs more prudently and the government adopts a more hands-off approach in these matters. Not allowing telcos to surrender spectrum mid-way also strengthens this approach. The renaming of Universal Service Obligation Fund (USOF) to Digital Bharat Nidhi, with a broadened scope, and the distinct regulatory treatment of broadcast services, further underscore the Bill’s comprehensive approach. Overall, these changes collectively signal a significant step towards creating a dynamic, secure, and forward-looking telecom environment in India, positioning it to effectively navigate the challenges and opportunities of a digital future.