The Union Cabinet has given its approval to the Draft Indian Telecommunications Bill, as reported by sources familiar with the development. The bill was initially issued in September last year and proposed to expand the scope of Indian telecommunications services to include over-the-top (OTT), internet-based, and satellite-based communication services, broadcasting, internet, and broadband services. However, this proposal has raised concerns among social media and technology companies operating in the messaging space, as it could potentially lead to the regulation of OTT communication apps.
The government has reiterated that its intention is to engage in light-touch regulation and ensure user safety and online trust. While the bill is expected to cut across all sectors, specific details about its impact on other industries will be clarified through “carve-outs.”
The bill seeks to replace three existing acts: the Indian Telegraph Act, 1885, the Indian Wireless Telegraphy Act, 1933, and the Telegraph Wires (Unlawful Possession) Act, 1950. The original draft had suggested reducing the powers of the Telecom Regulatory Authority of India (TRAI), but the final version is expected to exclude those provisions. TRAI’s authority will not be affected, and the regulator’s powers, including the appointment of officials, will be considered.
The bill aims to enhance consumer protection from spam and fraudulent calls while becoming an umbrella legislation for all forms of communication and voice and data carriage. It also outlines that spectrum allocation can be conducted through auctions, administrative processes, or other mechanisms as decided by the government.
Regarding the Postal Services Bill, 2023, the Cabinet has also given its approval, and it is scheduled to replace the antiquated Indian Post Office Act of 1898. This bill will revamp the postal department and focus on improving its key services, such as parcel services that can compete with private players and generate revenue. Additionally, the bill may address financial services in rural areas through postal services.
While both bills are set to bring significant changes to the telecom and postal sectors in India, they are yet to be taken up during the ongoing session of Parliament. The approval by the Union Cabinet indicates the government’s commitment to modernize and strengthen these vital sectors and promote the digital transformation of the country.