Telecommunications (Telecom Cyber Security) Rules, 2024

Syllabus: GS3/Infrastructure

Context

• The Department of Telecommunications (DoT) has notified the  Telecommunications (Telecom Cyber Security) Rules, 2024.
  • This is the first set of rules to be issued under the newly issued Telecommunications Act, 2023.

Key Provisions

• Aim: To safeguard India’s communication networks and services, through measures including specified timelines for telcos to report security incidents and make disclosures.
• A telecommunication entity will include any person providing telecom services, or establishing, operating, maintaining, or expanding telecom network, including an authorised entity holding an authorisation.
• Access of Data to Union Government: The rules also empower the central government/ its authorised agency to seek traffic data and any other data (other than the content of messages) from a telecom entity for the purpose of ensuring cyber security.
• Reporting of the Cybersecurity Incidents: It has mandated telecom companies to report cybersecurity incidents to the government within six hours of becoming aware and additional details within 24 hours.
• Chief Telecommunications Security Officer: Telecom companies have been asked to appoint a chief telecommunications security officer, who is a citizen and resident of India.
  • The officer will be responsible for coordinating with the Central government on behalf of the telecommunication entity for the implementation of the rules.
• Cybersecurity Policy: The telecom operators are also required to adopt a telecom cybersecurity policy, which includes security safeguards, risk management approaches, actions, training, best practices and technologies. 
• Prior Registration for International Equipment: A manufacturer of equipment that has an International Mobile Equipment Identity (IMEI) number is required to register the number of such equipment manufactured in India with the government before the sale of first such equipment.

Telecommunication Sector in India

• India is the world’s second-largest telecommunications market with a total telephone subscriber base of 1.20 billion.
• India ranks as the world’s second-largest market in terms of total internet users.
• The Telecom sector is the 4th largest sector in terms of FDI inflows, contributing 6% of total FDI inflow. 
• Reasons for the Growth of Industry: Key drivers pulling growth in the Indian telecom sector include demand for 5G network, government policies and new regulation besides relative affordability of services.

Challenges Faced by the Sector

• Regulatory Framework: Changes in regulations, spectrum pricing, licensing requirements, and government policies impact the operations and investments of telecom companies.
• Infrastructure Development: Despite significant progress in recent years, there are still gaps in telecommunications infrastructure, particularly in rural and remote areas.
  • Extending network coverage to these areas remains a challenge due to factors like difficult terrain, lack of electricity, and insufficient infrastructure.
• Competition and Pricing: Intense competition among telecom operators has led to price wars and margin pressures.
  • While this benefits consumers with lower tariffs, it puts strain on the financial health of telecom companies.
• Quality of Service: Maintaining consistent quality of service, especially in densely populated urban areas, is a challenge for telecom operators.
  • Issues such as call drops, network congestion, and slow internet speeds lead to customer dissatisfaction.
• Cybersecurity: With the increasing digitization of services, cybersecurity has become a critical concern for telecom companies.
  • They must protect their networks, customer data, and infrastructure from cyber threats and attacks.
• Technological Advancements: Keeping pace with rapid technological advancements, such as 5G deployment, requires substantial investments in infrastructure and upgrades.
  • Telecom companies need to balance these investments with revenue generation and profitability

Government of India’s Initiatives to promote Telecommunication Sector:

• Digital India Programme: Launched in 2015, Digital India aims to transform India into a digitally empowered society and knowledge economy.
  • It includes initiatives to provide broadband connectivity to all villages, promote e-governance, and improve digital literacy.
• BharatNet: It is the world’s largest rural broadband connectivity program and plays a crucial role in bridging the digital divide between urban and rural areas.
• Infrastructure Development: The government is investing in the development of telecom infrastructure, including optical fiber networks, mobile towers, and rural broadband connectivity, to support the growth of the sector and improve service quality.
• Atmanirbhar Bharat (Self-reliant India) Initiative: The government has emphasized promoting domestic manufacturing of telecom equipment and components to reduce dependence on imports and boost the growth of the domestic telecom industry.
• Ease of Doing Business Reforms: The government has implemented several reforms to improve the ease of doing business in India, including streamlining regulatory processes, reducing paperwork, and digitizing services, to attract investment and foster growth in the telecom sector.

Way Ahead

• Operators are expected to expand 5G coverage and invest in infrastructure, which will drive demand for new devices and services.
• Increased smartphone penetration and data consumption are boosting demand for digital platforms and services.
• The telecom sector is crucial for the digital economy, and as its services expand, cybersecurity becomes even more critical.
• Addressing evolving threats, securing new technologies, and meeting regulatory requirements are critical for the growth of the sector.

Source: TH