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Telecom Bill passed in Lok Sabha: Minister side steps question on OTT

Despite questions from several Members of the Parliament, Union Communications Minister Ashwini Vaishnaw did not provide any clarifications on whether online services would be brought under the ambit of the bill.

On December 20, Lok Sabha passed the Telecommunication Bill, 2023. Despite multiple members of the parliament asking Communications Minister Ashwini Vaishnaw whether online services will be included under the scope of this bill, he did not provide any clarification on the matter. The telecom bill was first released and put up for consultation in 2022 and repeals the Indian Telegraph Act, 1885, Indian Wireless Telegraphy Act, 1933, and The Telegraph Wires (Unlawful Possession) Act,1950.

This bill requires telecommunication services to seek government authorization to carry out their operations in India. It allows the government to suspend, detain, and intercept messages and also to take temporary possession of telecom services in case of an emergency. Notably, this draft of the bill does not mention the terms over-the-top (OTT) communication services and emails— both of which were mentioned in the 2022 version. Despite the lack of these terms, the definition of a message under the bill includes “any sign, signal, writing, text, image, sound, video, data stream, intelligence or information sent through telecommunication,” which leaves room for the inclusion of online services under its ambit.

Key points raised during the Lok Sabha discussion:

Incidental messaging should be covered: Member of Parliament Sanjeev Kumar suggested that online services with incidental messaging services (where messaging is not the primary function) such as Paytm should be covered under the scope of the bill. Notably, this point (with Paytm as an example) has previously been made by Bharti Airtel in response to the Telecom Regulatory Authority of India’s (TRAI) consultation on OTT communication services. Incidental messaging has not been excluded from the purview of the bill.

The definition of telecom has been streamlined: While Vaishnaw never explicitly said that online services are not included, MP Jayant Sinha noted that the definition of telecom has been streamlined to only include networks, services and radio equipment. He said that OTT services have been not included in the bill.

Administrative allocation for sat com is the global norm: MP Bhartruhari Mahtab said that administrative allocation of spectrum for satellite broadband services as mentioned under the bill, could be a “big win” for Bharti OneWeb, Starlink, and Project Kuiper. He highlighted that while these companies wanted administrative allocation, Reliance Jio had called for auctions instead. “The assignment of spectrum, whether through auction or administrative means, for satellite communication was at the heart of the debate between the government and the divided industry,” he said. MP Mahtab pointed out that the Department of Telecommunications (DoT) even went to TRAI for “modalities relating to auctioning satellite spectrum,” and said that all of this debate on auction vs allocation of the spectrum came in the backdrop of the Supreme Court’s judgment in the 2G spectrum case.

Vaishnaw explained that satellite as a service allows the same spectrum frequency to be used by multiple organizations. As a result of this technical point, almost all countries in the world use administrative allocation for it. He said that this bill follows the spectrum allocation processes laid out in the order of the Supreme Court’s constitutional bench. This bench, he explained, had said that if spectrum needs to be allocated administratively for a technical reason, then that is permissible. “The technical reasons and administrative reasons are very specific and narrowly defined,” he said adding that this has been done to prevent any discrimination.

Biometric identification for SIM cards: Sinha mentioned that SIM cards would only be provided post-biometric authentication under the bill. Vaishaw also elaborated on the use of biometric verification and said that it would help prevent people from obtaining SIM cards through fraudulent means. While both Sinha and Vaishnaw focused on SIM cards, the bill states that the government can notify which telecom services would require biometric verification, meaning that other services could also potentially require verification; what these services would be was not clarified during the discussion.

On temporary possession of telecom services: MP Mahatab pointed out that the bill allows the government to take possession of telecom services under emergencies and asked what “temporary possession” as stated in the bill meant and how the temporary period be defined.

Sinha said that while many have criticized the fact that the government can take over telecom services in emergency situations, similar provisions exist in the rest of the world. “When America had 9-11, when America had hurricane Katrina, using the 1962 Communications Act [of US] networks were used by the government. The same was also done in France, we have given the government the right to do the same via structural reform,” he said.

Will this bill make TRAI a rubber stamp? MP Mahatab mentioned that the bill considerably dilutes TRAI’s regulatory powers and says that private sector executives shall be appointed to the role of TRAI chairperson.

What are the limits on interception? “When I am communicating certain things to someone, how much can the state interfere? This is the question that needs to be answered in a civilized society,” MP Mahatab said. He added that while he understood that in times of emergency, it becomes necessary to confine certain messages, “but at what level it can be monitored and a decision has to be taken, that is not defined here [in the bill], ” he explained.

Vaishnaw said that since the People’s Union of Civil Liberties (PUCL) judgement, 1997 there has been a clear arrangement that allows the government to carry out interception based on the provisions of the constitution,  the same checks and balances have been added to the bill as well.

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