The Aakhya Weekly #17 | A New Dawn for Indian Telecom
The Aakhya Weekly #17 | A New Dawn for Indian Telecom
In Focus: DoT unveils draft of new Telecom Bill
The Indian Telecommunication Bill, 2022 (Telecom Bill) was published by the Department of Telecommunications (DoT) late Wednesday, September 21, 2022, for public consultation. This is the first in a series of three reforms that the Ministry of Electronics and Information Technology (MeitY) has mentioned would be forthcoming, the other two being the Digital India Act as a potential replacement of the Information Technology Act, 2000, and the much-awaited data protection legislation, which has returned to the drawing board for fourth time.
The Telecom Bill has been envisioned to revamp the existing regulatory framework pertaining to the telecommunication sector which based on the Indian Telegraph Act, 1885. The Bill has been drafted keeping in mind the rapid pace of technological developments and the need for a fresh legal framework to accommodate these developments. The draft legislation seeks to replace three existing laws pertaining to the telecom industry: (a) The Indian Telegraph Act, 1885; (b) The Indian Wireless Telegraphy Act, 1933; and (c) The Telegraphy Wires (Unlawful Possession) Act, 1950. To allow for continuity, the rules that are currently in place will be followed until new rules are formulated. The Telecom Bill also mentions that equivalent legislations in Australia, the European Union, United Kingdom, Singapore, Japan and the United States of America were referred to while preparing this draft.
In what could be considered a provision that might give way for surveillance, the bill allows for the interception of telecom services by the government. The bill has also proposed several provisions that would resolve several regulatory ambiguities in the telecommunication industry. Such provisions include detailed provisions for spectrum allocations and Right of Way, easing up processes of mergers and acquisitions, a special enabling framework for payment defaults etc.
Various industry associations like the Broadband India Forum (BIF) have raised concerns over various provisions in the Bill, such as curtailment of the TRAI’s powers to make recommendations to the Government for telecom licenses and services, and the inclusion of OTT communication services in the ambit of telecom services to be governed by the Bill’s regulations.
“The importance of these (OTT communication) services in the socio-economic growth of the country cannot be undermined. They are the backbone of the digital economy and by including such services as telecommunication services and subjecting them to licensing, it could stifle the entire socio-economic system, kill innovation and stymie the GDP growth”, the BIF said in its statement.
Readers should note that some newspapers carry articles suggesting that the new Bill would be applicable to all types of OTT services including OTT content delivery platforms like Netflix. However, this is misleading, as the Bill specifically states “OTT communication services”. Telecom Minister Ashwini Vaishnaw has also expressly clarified that it is only the OTT apps which provide communication services will be brought under the law, not those that offer broadcasting services. He also said that the Bill will not overlap with existing regulations and will be focused on light-touch regulation to ease the regulatory burden on the stakeholders.
Top Stories of the Week
Govt. imposing NavIC compliance for all smartphone makers
In another push for atmanirbharta, the government wants all new devices made by smartphone makers to be compatible with India’s NavIC navigation system from January 2023. Out of the roughly 300 mobile handsets in the market, only two dozen models have NavIC compliance as yet.
NavIC, which stands for Navigation with Indian Constellation, claims to offer absolute position accuracy up to 5 meters, which is twice as good as GPS. The constellation of seven satellites has been in orbit since 2018, and offers two levels of service, the "standard positioning service", which will be open for civilian use, and a "restricted service" for authorised users (including the military). Other global navigation systems like the United States’s GPS and Russia’s GLONASS are operated by their countries’ defence agencies, which can be shut for civilian use if they wish to do so.
To comply with the government's mandate, dual band chipsets to support both GPS and NavIC are required, leading to an increase in costs. This is a concern for smartphone makers in an extremely price sensitive domestic market currently dominated by international players like Samsung and Xiaomi. In addition, the timeline for NavIC-compliance is also too short for manufacturers to adhere to, many of whom have already prepared models for launch in 2024.
For more information, read this exclusive piece by Munsiff Vengatill and Aditya Kalra in Reuters.
Centre extends the PM Garib Kalyan Anna Yojana scheme for 3 more months
On 28th September 2022, the Union Cabinet chaired by Prime Minister Narendra Modi approved the extension of the PM Garib Kalyan Anna Yojana (PMGKAY), a free food scheme launched as a Covid-relief measure in March 2020. Now applicable till December, this marks the seventh phase of the scheme’s rollout. 5 kgs of wheat or rice are provided free of cost to approximately 800 million beneficiaries of the National Food Security Act under the scheme, adding up to a total expenditure of Rs 3.9 trillion till now. The decision was made following month-long consultation between the food and finance ministries.
Ahead of the state elections in Gujarat and Himachal Pradesh, the government pays heed to the impact of Covid visible in supply-line disruptions quoting adequacy of foodgrain stock while the worry of missing the fiscal deficit target of 6.4% of GDP for the year still looms.
Jaishankar addresses delay in US Visas for Indians, Blinken reassures of a solution
Indian External Affairs Minister, Dr. S. Jaishankar met with US Secretary of State, Antony Blinken to discuss a host of matters related to the growing partnership between New Delhi and Washington. Amongst this, EAM Jaishankar raised the matter of massive delays in US visa process for Indians. Blinken cited COVID-19 as the major reason for such backlogs and reassured India’s EAM that he has been looking into the matter, with a hope to overcome the issue soon.
For a visitor’s visa, the US Embassy in Delhi listed the waiting time as 833 days, with student visas taking up to 430 days. During the joint media briefing at the Foggy Bottom headquarters of the State Department in Washington, EAM Jaishankar said, “It is also in our mutual interest to facilitate the development and mobility of talent. We agreed that impediments over this should be addressed”. Detailing on how COVID-19 impacted the visa issuing process, Blinken told the press that this isn’t an issue just with India but across countries. He said the biggest impact COVID-19 had was reduction in human resources across US Embassies to efficiently carry out the visa granting process.
This Week in Policy
Macroeconomics and Taxation
The inclusion of Indian government bonds in the JP Morgan Emerging Market Global Index has been deferred, as several operational issues are yet to be ironed out. Inclusion in the index shall reportedly result in inflows of $170-250 billion over the next decade.
The Finance Ministry intends to announce the decriminalisation of various provisions of India’s tax laws as part of next year’s budget. It shall also rationalise high penalties in GST compounding.
The World Bank grants a loan of $150 million to the Government of Punjab. The loan has a maturity period of 15 years, and shall help in the creation of a performance based grants system and the setting up of 24x7 water supply in Amritsar and Ludhiana.
Labour
Formal employment rose in July, continuing its buoyancy for the fourth consecutive month, according to payroll data released by MoSPI. Enrollment into the EPF, ESIC and NPS increased by 13%, 0.59% and 12.9% respectively over the month. Separately, Quarterly Employment Survey data for the months of January-March 2022 reveals a small uptick of 0.4 million in formal employment from the preceding quarter.
In order to promote skill development and reap the advantages of India’s demographic dividend, the Government intends to set up a Digital University. The Digital University shall have multiple entry and exit points, and shall be linked to an academic bank of credit.
Agriculture and FMCG
Government to launch an oilseed mission to boost domestic production of oilseeds and reduce import dependence. India currently imports close to Rs. 1 trillion worth of edible oil annually, amounting to half of its total demand.
The share of crops in India's agriculture fell to 55.5% in 2019-20 from 62.4% in 2011-12. Fruits and vegetables now amount for the highest gross value output, overtaking cereals from a decade ago.
Healthcare
The Government is repurposing the CoWIN and Aarogya Setu portals to manage public health concerns under the Ayushman Bharat Digital Mission.
Delhi looks to officially relax its mask mandate, doing away with the INR 500 fine for not wearing masks in public places from October 1.
Foreign affairs
India’s External Affairs Minister, Dr. S. Jaishankar concluded his visit to the United States with over 50 meetings, among which 40 meetings were bilateral. However, Jaishankar didn’t meet his Chinese and Pakistani counterparts on the sidelines of the 77th UNGA session.
In collaboration with the UN, Government of India organised ‘India@75 Showcasing the India-UN Partnership in Action’, to highlight India’s contribution to the international organisation as well as towards South-South co-operation. Representatives from Guyana, Jamaica, France, Maldives, among others were also present at the event.
Technology, Media and Telecommunications
The TRAI is slated to come out with amended broadcast tariff guidelines between 15-25 October 2022 following the recent Open House Discussion on New Tariff Order (NTO), whose implementation has left broadcasters and the DPOs bitterly divided.
The Tamil Nadu cabinet on 26 September 2022 passed an ordinance to ban all online games with stakes in the state of Tamil Nadu, which will come into force once it receives the Governor’s approval.
The Delhi High Court on 28 September stayed an order of the TDSAT asking broadcasters to furnish information on the mode of transmission on OTT platforms. Next date of hearing is 3 March 2023.
The Competition Commission of India is studying the relevance and feasibility of introducing ex-ante regulations for digital markets in India.
International trade and commerce
The Government of India has extended the Foreign Trade Policy (2015-20) by a further 6 months, with effect from 1 October 2022.
Negotiators from India and Australia met on 26 September 2022 to commence talks over a new Comprehensive Economic Co-operation Agreement.
Banking, Finance and Insurance
SEBI set to allow confidential pre-filing of IPO documents, relax open offer pricing norms for disinvestment of PSUs, and seek enhanced disclosures from startups in offer documents on the IPO.
RBI grants approval to two Russian banks, Sberbank and JSC VTB, for opening special Vostro account for rupee trade - the first for foreign lenders in the country. This comes a month after the state-run UCO bank was granted approval for the same with Gazprombank of Russia.
RBI orders banks to make retroactive provisions for defaults of loan accounts, including companies owned by state governments which defaulted on payments between FY20 and FY22.
Manufacturing
The Department of Heavy Industries is implementing a system to introduce traceability in the way manufacturers share records of the domestic value addition (DVA) in their products with the government. This is expected to impact the eligibility criteria of OEMs for subsidies.
India has set a target of Rs. 1.75 lakh crore turnover in defence manufacturing by 2025, as the government sets aside around Rs. 85,000 crore in this year’s defence budget for procurement of military equipment from domestic firms.
The Government increases financial incentives for semiconductor and display manufacturing units under its $10 billion plan. Capital expenditure support has been increased from 30% to 50% and the cap of $1.5 billion on 50% of the project cost for companies setting up display fabrication factories has also been removed.
Retail and e-commerce
Delhi Government has sent a five-point recommendation letter to the central government's Department for Promotion of Industry and Internal Trade (DPIIT) on the upcoming national retail trade policy. Top recommendations include the introduction of a single ID system, a strict monitoring and evaluation mechanism and extension of license validity among others.
The Department of Empowerment of People with Disabilities (DEPwD) has signed a Memorandum of Understanding (MoU) with Amazon India and the Skill Council for People with Disabilities to jointly provide skill training and employment opportunities in e-commerce sector.
Logistics
The Real Time Train Information System (RTIS), developed by the Ministry of Railways in collaboration with the Indian Space Research Organisation (ISRO) will be installed in 6,000 more locomotives across 50 sheds in its second roll-out. The system tracks the location and speed of trains without manual intervention.
Sustainability
Government launches JALDOOT app for monitoring ground water tables across the country. Jaldoots, or officers assigned to measure water levels, will capture geo-tagged photographs twice a year to capture both pre- and post-monsoon water levels in villages.
National Green Tribunal continues handing out punishments to states for improper waste management, slapping a Rs. 2,000-crore fine on Punjab for failure to treat waste, as well as a Rs. 100 crore fine on Haryana for failing to clear Gurugram’s waste.
Upcoming Events
International Energy Summit: Transition Towards Green Economy
October 11-12 | The Imperial, Janpath, New Delhi
ASSOCHAM is organising the “International Energy Summit - Transitioning Towards India’s Economy” at The Imperial, Janpath on October 11 and 12. India is currently implementing one of the most extensive renewable energy expansion programmes globally, and is on track to achieve 50% cumulative electric power capacity from non-fossil fuel sources by 2030. The discussions will revolve around the themes of state contributions towards green economy, grid modernization and resilience, and energy security and affordability, among others. The Union Minister for Power, New and Renewable Energy, Shri R.K. Singh and the Union Minister for Environment, Forest, and Climate Change, Shri. Bhupendra Yadav will be present at the summit. More Information | Registration Link
National Conference on Enhancing Agricultural Productivity
October 12 | The Park Hotel, New Delhi
ASSOCHAM is organising the “National Conference on Enhancing Agricultural Productivity: Integration of Improved Seeds and Agricultural Inputs” at The Park Hotel, New Delhi, on October 12. Agricultural inputs account for 40-50% of total yield increase for most crops, however, regardless of the availability of several technologies, particularly of improved crop varieties, there has been limited use of improved seeds and fertilisers by many farmers. The conference aims to discuss possible solutions for the same. Shri Narendra Singh Tomar, Minister of Agriculture and Farmers Welfare, GoI, will be the chief guest for the event. More Information | Registration Link
Invest Rajasthan Summit
October 7-8 | Jaipur Exhibition & Convention Centre, Sitapura, Jaipur
The Bureau of Investment Promotion, Rajasthan in partnership with CII is organising the Invest Rajasthan Summit, 2022 at the Jaipur Exhibition & Convention Centre from October 7-8. Invest Rajasthan is the state’s active investor outreach program comprising of domestic, national and international investor meets, embassy connect programs and virtual seminars. The program aims at soliciting investment proposals, processing them on a mission mode and taking them to fruition. The summit will host six separate conclaves on the themes of MSMEs, Startups, Agri Business, Tourism, Future Ready Sectors, and NRRs. More Information
A Few Good Reads
Read this riveting piece by Pranay Kotasthane in defence of traditional institutions, as he appraises the British monarchy in context of the coronation of King Charles III.
Vanita Bhatnagar writes about the efforts of digital companies to navigate regulatory ecosystems through an evolving network of public policy professionals.
Mahesh Vyas, MD and CEO of the CMIE, reconciles Haryana’s upbeat economy and its unnaturally high unemployment rate.
Vivek Kaul traces the lasting damage of colonial rule on India’s economic trajectory.
Abhishek Anand, Josh Felman and Arvind Subramanian advise caution while appraising the Indian economy.
Tweets of the Week
Prof. Shamika Ravi underscores the importance of India helming the G20 for the Gulf:
As Pakistan grapples with an economic crisis, a Pakistani perspective on India's 1991 reforms:
Some of the art coming out of Iran:
Key Notifications
Central Electricity Authority releases draft resource adequacy framework for India, invites comments by 15th October, 2022. Comments may be emailed at ceirpcea@yahoo.com.
Ministry of Road Transport and Highways releases amendments to EV battery testing standards: AIS-156 and AIS-038 (Rev 2) to be implemented in two phases w.e.f 1st Dec, 2022 and 31st March, 2023.