New Rules Under Telecommunications Act, 2023

Syllabus: GS2/ Governance

Context

• The Union Government has notified three major authorisation rules under the Telecommunications Act, 2023, making the new telecom regulatory framework operational.

About

• The authorisation rules under the Act include rules;
  • Telecommunications (Authorisation for Provision of Principal Telecommunication Services) Rules, 2026.
  • Telecommunications (Authorisation for Captive Telecommunication Services) Rules, 2026.
  • Telecommunications (Authorisation for Provision of Miscellaneous Telecommunication Services) Rules, 2026.

Background

• The Telecommunications Act, 2023 replaces the Indian Telegraph Act, 1885 and the Indian Wireless Telegraphy Act, 1933.
• The Act consolidates India’s telecom laws into a single legislation to address technological advancements such as 5G, 6G, satellite communication, Internet of Things (IoT), and internet-based communication services.
• While certain provisions of the Act were notified in 2024, the notification of the authorisation rules completes its implementation.

Key Features of the Telecommunications Act, 2023

• Technology-Neutral Definition of Telecommunication: The Act defines telecommunication broadly as the transmission, emission or reception of messages through wire, radio, optical or other electromagnetic systems.
• Right of Way: The Act streamlines procedures for establishing telecom infrastructure on public and private property.
  • The provision is expected to accelerate broadband expansion and the rollout of next-generation telecom networks.
• Spectrum Assignment: Spectrum will ordinarily be assigned through auctions. Administrative allocation of spectrum is permitted for specified public purposes, including national security, defence, disaster management and public broadcasting.
• Digital Bharat Nidhi: The Act renames the Universal Service Obligation Fund (USOF) as the Digital Bharat Nidhi (DBN).
  • The fund will continue to finance telecom infrastructure in rural, remote and commercially unviable areas.
• Emergency Powers: The Central Government may temporarily take possession of telecom infrastructure during war, public emergency or in the interest of national security.
  • The Government may also intercept, monitor or suspend telecommunications in accordance with prescribed procedures.

Telecommunications (Authorisation) Rules, 2026

• The government also notified the DoT’s Telecom eServices Portal for digital implementation of the new framework, clarifying that authorisation does not automatically grant spectrum rights.
• Authorisation-Based Regulatory Framework: The rules replace the earlier licence-based operational framework with an authorisation system prescribed under the Telecommunications Act, 2023.
• Satellite & Data Rules: Companies planning to establish, operate, maintain or expand satellite telecom networks or provide telecom services through satellite networks, will have to obtain separate government approval.
  • The rules also require authorised entities to obtain government approval before establishing or expanding telecom infrastructure in security-sensitive areas.
  • Telecom operators must store network data, logs and related information within India. Copies of such data cannot be routed, shared or made available outside the country.

What are the Concerns?

• Broad Definition of Telecommunication: The technology-neutral definition of telecommunication has raised concerns that it could bring internet-based communication platforms, such as messaging and calling applications, within the regulatory ambit if notified by the Government.
• Privacy Concerns: The Act empowers the Government to intercept communications and temporarily take possession of telecom infrastructure under specified circumstances.
• Regulatory Uncertainty for OTT Platforms: The regulatory treatment of Over-the-Top (OTT) communication services remains uncertain.

Way Ahead

• The Government should ensure that the implementation of the Telecommunications Act, 2023 provides regulatory certainty, safeguards user privacy, and maintains an appropriate balance between national security and digital rights.
• A transparent and technology-neutral regulatory framework should facilitate the smooth transition to the new authorisation regime while promoting universal digital connectivity and investment in next-generation telecommunications.

Source: TH