Telecom Licensing Is About Carriage, Not Content : Daily Current Affairs

Date: 22/12/2022

Relevance: GS-3: Science and Technology- developments and their applications and effects in everyday life

Key Phrases: Indian Telecommunication Bill, 2022, Telecom Regulatory Authority of India Act, 1997, Mandating Licensing For Over-The-Top Internet Services, Oligopoly Of Telecom Companies

Why in News?

The Department of Telecommunications (DoT) has released the draft Indian Telecommunication Bill, 2022 that proposes to repeal the Indian Telegraph Act, 1885, the Indian Wireless Telegraphy Act, 1933, and the Telegraph Wires (Unlawful Possession) Act, 1950 while also significantly amending the Telecom Regulatory Authority of India Act, 1997.
However, the new draft is more than just a consolidation of the existing laws. In particular, the potential of mandating licensing for over-the-top (OTT) Internet services under the proposed law in particular calls for a fine analysis.

Key Highlights:

One of the key changes in the newly released Telecom Draft Bill is inclusion of new-age over-the-top communication services like WhatsApp, Signal and Telegram in the definition of telecommunication services.
The inclusion of over-the-top (OTT) services within the definition of “telecommunication services” is being seen as a step too far—requiring firms to obtain licences even if they are just providing services on top of telecom services.

Role of Telecom Licensees:

Telecom licensees build, operate, and offer services for the carriage of electromagnetic signals through wire or wireless communication and these span the physical, data and network layers.
However, the former is typically copper or optical fiber while the wireless includes microwaves, mobile towers, and satellites.
In 2017, TRAI reiterated that “Internet Telephony service is untethered from the underlying access Network”.
In multiple filings both in courts and with Telecom Regulatory Authority of India (TRAI), telcos have been arguing for, and indeed secured, multiple concessions on the ground of potential losses on account of Internet telephony.

Oligopoly of Telecom companies (Telcos):

Telcos enjoy certain exclusive privileges which include access to exclusive spectrum in the license area, right of way (RoW), right to interconnection, assignments from the national numbering plan, and, orbital slots for communication satellites.
The market consolidation has resulted in an oligopoly of just four operators.
Even at the peak of hyper-competition a few years back, they used to be just 10-12.

Scope of OTT platforms:

Any type of content can be digitised and transmitted over packet-switched telecom networks through the medium of OTT platforms. Hence, sheer possibilities are limitless for OTT innovation at the ‘application’ layer over the underlying telecom services.
These include e-governance services like online tax returns and travel booking, interactive platforms like MyGov, E-commerce using ONDC (Open Network for Digital Commerce), and digital payments including UPI (Unified Payment Interface), etc.

Need for Same Rights to the OTT platforms:

It’s impossible for OTTs to operate without the telecom infrastructure.
If the ‘Same Service, Same Rule’ argument is provided while inclusion of the OTT platforms under the definition of telecommunication services, then such a regime must confer ‘Same Rights’ to the OTT platforms.
However, the OTTs cannot participate in the spectrum auctions, nor are they eligible for right of way to lay a cable. Clearly, they are not the same.

What is Over-the-top platform?

OTT Platforms, also known as the Over-the-top platform, are web-based services offering video and audio streaming content.
The OTT platforms allow you to pay for the type of content you want to watch. You don’t have to deal with a cable operator, satellite connection, or other broadcast mediums.
The best part that makes OTT more advantageous over the traditional viewership is accessibility and subscription-based service. You can access international-level content from anywhere around the world.

Regulatory mechanism for OTTs:

According to the Business Allocation Rules, Ministry of Electronics & IT (MeitY) is responsible for ‘all matters pertaining to Internet’ except the Internet access licensing which is under the DoT.
It is argued that OTTs operate in a regulation vacuum.
OTTs are subject to the Information Technology Act, 2000 administered by MeitY. Data Protection Act would also apply once enacted.
OTTs may also have to comply with sectoral regulations. For example, a mobile wallet would have to follow the relevant Reserve Bank of India norms.

OTTs Are Complementary Rather Competitive:

For voice calls and text messages, 2G was good enough. However, it is largely the OTTs that drive both demand and fulfilment of the ever-growing quest for higher data capacity across mobile, fibre and satellite technologies and most tariff plans are about data rates and volume.
Hence, telecom law and department must focus on creating conducive norms for expeditious expansion of telecom infrastructure while letting millions, even billions of OTTs bloom.

Conclusion:

OTT platforms have a great future. Considering the present situation, the need for an unbiased regulatory body to regulate the contents on OTT platform is necessary.
The public today is looking for content that brings out the truth and realities of the society, provides regional varieties, and most importantly that does not hurt the sentiments of people.
The government must take care that the regulatory measures do not override the rights of people and provide an effective regulatory process.

Source: Hindu BL

Mains Question:

Q. The new Telecom draft bill is more than just a consolidation of the existing laws. In particular, the potential of mandating licensing for over-the-top (OTT) Internet services under the proposed law in particular calls for a fine analysis. Critically Examine.(250 words).