The past year marked a turning point for the Indian telecom sector from a policy standpoint with the introduction of the Telecommunications Bill, 2023. The legislation represents a comprehensive overhaul of the country’s century-old telecom laws, such as the Indian Telegraph Act of 1885, the Wireless Telegraphy Act of 1933, and the Telegraph Wires (Unlawful Possession) Act of 1950. The new law consolidates regulations related to the development, expansion and operation of telecom services and networks, as well as the assignment of spectrum. The implementation of the act began in June 2024. Since then, various segments are being introduced/redefined on a continuous basis.
In another significant policy development, the government implemented the Digital Personal Data Protection Act, 2023, aimed at safeguarding users’ personal data in an era of escalating data usage. Most recently, the 5G spectrum auctions saw telcos strengthening their service portfolio.
A look at the major policy and regulatory initiatives taken during the past year and the outlook for 2024…
The Telecommunications Act, 2023
The new legislation has introduced several structural changes in the Indian telecom legal framework. These include a shift towards an authorisation system aimed at streamlining licensing; administrative allocation of spectrum for specific sectors; and provisions for sharing, trading and leasing of spectrum. The act empowers the government to reclaim unutilised spectrum, establishes a voluntary disclosure mechanism for compliance and sets up a tiered dispute resolution structure. In addition, it grants interception powers to the government in cases of public emergency, national security or war, enabling the control and management takeover of telecommunication services. The legislation also paves the way for the administrative allocation of satellite spectrum, aligning with global norms.
The government has started implementing several rules under certain sections of the new act since June 2024, including definitions of various terminologies related to the implementation of the act; the right-of-way (RoW) framework, wherein the definition of public entities has been broadened to include government agencies, local bodies and public-private partnership projects in the airport, seaport and highway segments; common ducts; telecommunication standards; national security and public safety; inclusive service delivery, innovation and technology development; and protection of users. Recently, in July 2024, more sections have been notified, including those on the optimal utilisation of spectrum; prohibition of equipment that blocks telecommunications; and criteria for the appointment of the chairperson and members of the Telecom Regulatory Authority of India.
The Digital Personal Data Protection Act, 2023
In August 2023, Parliament passed the country’s first law on the protection of users’ personal data, providing safeguards for personal data and outlining the rights and responsibilities of various entities such as data principals (data owners), data fiduciaries (data collectors and custodians), data processors (entities processing data on behalf of fiduciaries) and consent managers (intermediaries between principals and fiduciaries). The act imposes strict compliance standards on “significant data fiduciaries”, defined as entities collecting data beyond a specified threshold (exact amount unspecified) or data with potential impacts on electoral democracy, sovereignty or security in India. These entities are required to designate “data protection officers” based in India as points of contact and appoint independent auditors to conduct regular data audits.
5G spectrum sale
In June 2024, the Department of Telecommunications put 10,523.15 MHz of airwaves for sale, but received a limited response from the industry. The spectrum was auctioned across eight bands at a reserve price of Rs 963 billion, but turned out to be a low-key affair fetching around Rs 1.5 trillion. All three private telecom service providers – Bharti Airtel, Reliance Jio Infocomm and Vodafone Idea Limited – bid to procure spectrum for a consideration of Rs 113 billion, with the interest largely being on the 900 MHz and 1800 MHz bands. The 900 MHz band saw the highest activity.
New RoW rules
In July 2024, the government notified the draft RoW rules under the Indian Telecommunications Act, 2023, which aims to ease the regulatory requirements for establishing a telecom network. The new rules provide clarifications on compensation for the establishment of underground and overground telecommunication networks on public property. They also provide guidance on charges for the installation of small cells and other street furniture in urban and rural areas.