The Indian Telegraph Act of 1885 has stood inexorably tall and firm for 140 years, adapting smoothly to the many monumental changes in technology and environment.

However, there comes a time when the old order needs to change, and this was heralded by the Telecommunications Bill 2023, which proposes an epoch-making authorisation framework instead of licensing.

While examining the TRAI Consultations on Framework for Service Authorisations, certain honest doubts may arise such as: How will the present licensing regime for specific services transition into one where authorisations are issued for services? What would that framework look like? How would that framework affect the operations of the existing players and enable entry of new players? What kind of regulation is warranted for different kinds of telecom network and services? More importantly, how will these changes impact the ease of doing business, competition, and the long-term objectives of India’s digital economy?

The naysayers say that the proposals are mere semantics with the term ‘licence’ getting replaced with ‘authorisation’, and this needs to be countered.

Streamline the process

The new framework must replace the cumbersome licensing regime with a more streamlined process. However, it is crucial that the objectives of this new framework serve overall national priorities of inclusivity and Viksit Bharat.

The guiding principles that drive the rules should be lowering entry barriers, encouraging competition, attracting more investments, fostering innovation, and reducing regulatory and administrative costs.

The true advantage of the authorisation framework will lie in its potential to catalyse innovation by providing a more flexible and adaptive regulatory environment.

Telecommunication services that do not utilise scarce resources and are not public-facing should be provided automatic or “general authorisations”, requiring entities only to notify the Central government.

Wherever possible, exemption from authorisation, as provided in the Act should be provided to foster entry for new players, and innovation.

One of the proposals is that of merging different service authorisations into a single, unified pan-India authorisation. While this might appear to simplify business operations, it could have far-reaching implications that may not serve the best interests of the market or consumers. India’s telecom sector thrives on specialisation, with companies developing expertise in specific areas. Merging these specialisations into a single authorisation could undermine this dynamic, reduce competition, lead to higher costs, limit consumer choice, and stifle innovation.

Importantly, Satcom Authorisations must be separate from Terrestrial Telecom Authorisations for several key reasons: Satcom utilises different technologies, is delivered differently to end-users using different customer devices and operates under unique terms and conditions. The Telecommunications Act 2023, clearly provides that spectrum for satcom services, like GMPCS and VSAT, must be assigned through an administrative process.

Further, within satellite services, there must be a clear distinction between Global Mobile Personal Communications by Satellite (GMPCS) and Commercial VSAT CUG Authorisations. GMPCS allows for voice, data, video, and messaging with connectivity to public networks, while Commercial VSAT CUG is limited to point-to-point data connectivity within a closed user group (CUG) without such connectivity.

The focus should be on creating a stable, predictable policy and regulatory environment that encourages both existing players and new entrants to innovate, invest and compete.

The writer is President, Broadband India Forum. Views are personal. Inputs by Sundeep Kathuria and Shubhika Saluja