NASSCOM seeks lower entry barriers in new telecom law

The Department of Telecommunication (DoT) on July 23rd 2022 had released a consultation paper (Paper) on the “Need for a New Legal Framework Governing Telecommunication in India”. The Paper goes beyond discussing concerns with the primary laws. Many challenges highlighted in the Paper are concerns with the vast overall telecom framework, which comprises several laws, rules, regulations, licenses, orders, guidelines, policies, and other instruments. We had summarised this Paper in a previous blog post available here.

NASSCOM, along with the Data Security Council of India (DSCI) made a joint submission on the Paper. Since, at this stage, there is no formal draft law to comment upon, we outlined specific desired outcomes that, in our view, should be achieved from a modernisation of the telecom regulatory framework.

The summary of recommendations are as follows:

• The DoT should follow up this Paper with a detailed consultation paper and a consultation process that adopts the process of the TRAI.
• The scope of the new framework should be limited to the operation of telecom facilities & systems and the provision of telecom services. These should be defined using the layered approach to regulation.
• Shift away from licensing individual service providers by default and introduce a risk-based approach to licensing & regulation.
• Introduce a mechanism in the primary law requiring the periodic review and assessment of licensing & regulation.
• Modernise spectrum management by incorporating the recommendations of the Comptroller and Auditor General of India (CAG) and establishing a principles-based legal framework
• Open markets by recognising ‘one India, one circle’ across the board
• Rationalise existing license conditions that serve as barriers to market entry.
• Establish formal timelines for approvals and permissions.
• The security duties of participants in the telecom ecosystem should be clearly defined and be accompanied with a grievance redress mechanism.
• New security and safety standards for the telecom ecosystem should be compatible with global standards.
• Align the framework for interception with the fundamental right to privacy.
• Introduce a performance assessment system for any future iteration of the USOF to ensure funds are used transparently, timely and to achieve measurable outcomes.
• The existing institutional arrangements between telecom regulators should be re-examined and aligned with international best practices.
• The new framework should formalize regulatory governance.

CT Bureau