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HomeBusiness NewsDraft telecom invoice proposes waiving off dues, licensing of OTT apps

Draft telecom invoice proposes waiving off dues, licensing of OTT apps

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Platforms resembling WhatsApp, Zoom, Netflix might come underneath the ambit of telecom providers that require a licence

Platforms resembling WhatsApp, Zoom, Netflix might come underneath the ambit of telecom providers that require a licence

The federal government has launched the draft of ‘The Indian Telecommunication Act, 2022’ whereby it has proposed a number of important adjustments, together with provisions for waiving off dues for financially confused operators, bringing over-the-top platforms (resembling WhatsApp, Zoom, Netflix) throughout the ambit of telecom providers that require a licence to function and provisions for message interception in case of public emergency.

The draft Invoice, which was launched late on Wednesday evening inviting feedback from stakeholders, seeks to exchange the prevailing authorized framework comprising the Indian Telegraph Act, 1885, the Wi-fi Telegraphy Act, 1933 and the Telegraph Wires (Illegal Possession) Act, 1950, that at the moment govern the telecom sector.

“It’s not simply authorities as massive regulator and trade the regulated, however an interactive system through which trade’s considerations are addressed by the federal government and the federal government’s concern are duly considered by the trade. That’s necessary as a result of we have now to take a look at the safety of customers…,” Telecom Minister Ashwini Vaishnaw mentioned on Thursday.

The explanatory be aware on the draft Invoice mentioned it aimed to consolidate and amend current legal guidelines governing provision, improvement, enlargement and operation of telecommunication servicesnetworks and infrastructure, and task of spectrum.

“Spectrum is a helpful and inexhaustible pure useful resource, which has a component of public good. Due to this fact, it is important to make sure environment friendly use and administration of spectrum… ,” the Centre mentioned within the be aware.

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The draft Invoice proposed a particular framework to deal with defaults in fee by a licencee or a registered entity, whereby underneath “extraordinary circumstances”, the federal government might enable for deferment of the fee of such quantities, conversion of an element or the entire quantities into shares within the licencee and even write-off of such quantities.

The draft Invoice additionally simplifies the framework for mergers, demergers and acquisitions, for which the entities might want to adjust to the scheme for restructuring as supplied underneath the Corporations Act, 2013, and solely want to tell the Division of Telecommunications. Additional, if the licensee is present process insolvency proceedings it might probably proceed to function if it continues to offer telecom providers and doesn’t default on fee of dues. Nonetheless, if the entity is unable to conform, then the assigned spectrum will revert to the management of the federal government. It “additionally seeks to create disincentive for buying spectrum at a worth decrease than auction-determined worth.”

The draft Invoice has proposed a refund of charges in case a telecom or Web supplier surrenders its licence.

The Invoice additionally expanded the definition of “telecommunication providers” to incorporate broadcasting providers, e-mail, video and knowledge communication providers, satellite-based communication providers, Web-based communication providers and over-the-top (OTT) providers, amongst others. Whereas the explanatory be aware states that for offering telecom providers “an entity shall should receive a licence”, the draft Invoice has a clause that permits exemptions from the requirement of licence and registration within the public curiosity.

Additional, it states that in case of any public emergency and within the curiosity of the sovereignty, integrity or safety of India, the Centre or a State authorities can have the powers to direct that sure messages “shall not be transmitted, or shall be intercepted or detained or disclosed to the officer talked about in such order”. Nonetheless, “Press messages meant to be revealed in India of correspondents accredited to the Central Authorities or a State Authorities shall not be intercepted or detained, until their transmission has been prohibited.”

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Noting that each telecom consumer needs to know who is looking, the federal government mentioned it had included provisions associated to id to assist stop cyber-frauds utilizing telecom providers. “Customers additionally want safety from calls that they need to keep away from. The Invoice permits a authorized framework for stopping harassment of customers from unsolicited calls and messages,” the federal government defined within the be aware. “The id of an individual sending a message utilizing telecommunication providers shall be accessible to the consumer receiving such message, in such kind as could also be prescribed,” it has mentioned within the Invoice.

Prashant Tarwadi, Director – Corporates, India Rankings and Analysis, mentioned the draft Invoice supplied readability upon two essential points — insolvency proceedings for confused telecom firms and bringing Over-The-High (OTT) and Web Service Suppliers (ISPs) underneath the umbrella of the Ministry of Telecommunications. “The draft invoice stipulates that possession of spectrum stays with authorities, and worth of spectrum can’t be bought by collectors underneath the Insolvency and Chapter Code (IBC). Authorities reserves the best to take again the spectrum if the ailing telecom operator fails to pay authorities dues.”

Nonetheless, he added that this might additional delay resolutions of enormous telecom operators on condition that “there was substantial delays in fee of presidency dues by such telcos and important a part of telcos’ debt are in the direction of spectrum dues payable to the federal government”.

Kazim Rizvi, Founding father of Delhi-based suppose tank The Dialogue identified that OTT providers are at the moment regulated underneath IT Act which is best suited to control OTT and digital platforms. Bringing them underneath the telecom providers will “have a big impression on the innovation on this sector due to the licensing necessities, added compliance burden and related prices”.

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“Secondly, the facility given to the State and Central authorities to order interception…would now be relevant to the messaging platforms which offer encrypted providers. There may be nonetheless no readability as to how this provision will function on such platforms the place they themselves maintain no data of the communication. Additional, the discretionary powers supplied underneath the draft invoice with out adhering to the need and proportionality mandate as envisaged in Puttaswamy judgement would possibly result in the instances of unchecked surveillance,” Mr Rizvi added.

The invoice has additionally diluted the powers of the Telecom Regulatory Authority of India and eliminated the components whereby the federal government needed to take suggestions from the authority earlier than issuing licenses, together with eradicating the at the moment current prohibition on appointing authorities officers as chairpersons under the rank of secretary and extra secretary, Mr Rizvi famous. “These adjustments would impression the autonomy and functioning of the authority,” he added.


By- The Hindu

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