Cabinet clears new telecom bill and postal services bill

The Union Cabinet is learnt to have cleared the Draft Indian Telecommunications Bill, according to two people familiar with the development.

The Cabinet is also learnt to have cleared the Postal Services Bill, 2023 dealing with the functioning of post offices in the country, which will replace the Indian Post Office Act of 1898, they said. This bill is slated to be taken to Parliament for approval in the ongoing monsoon session.

The government had issued the new telecom bill called the Draft Indian Telecommunications Bill, 2022 in September last year where it proposed to increase the scope of telecommunication services by including over-the-top (OTT), internet-based and satellite-based communication services, broadcasting, internet and broadband services within its ambit, which has been red flagged by social media and technology companies in the messaging space as it could lead to regulation of OTT communication apps. The bill is likely to address the issue of regulation of OTTs.

While the government has specified that it would engage in light-touch regulation, affected companies are continuing to oppose this proposal. “We have categorically maintained that we don't have any intent of having the licensing regime for OTTs. The focus is protecting the users, their safety and online trust. What needs to be done for that will be done,” a senior official told Mint.

The official added that while the provisions of the bill were likely to cut across all sectors, the distribution about what would be dealt in the other bills that the government was coming up with, would be made clear by way of ‘carve outs’.

The bill seeks to replace three existing acts, namely the Indian Telegraph Act, 1885, the Indian Wireless Telegraphy Act, 1933, and the Telegraph Wires (Unlawful Possession) Act, 1950.

The bill which had proposed to curtail or dilute powers of Trai in its initial draft is likely to exclude those provisions in its final version. The bill had proposed to delete provisions of the Trai Act that provide checks and balances via a consultation process between the regulator and the telecom department.

“There's no impact on Trai's powers and whatever the regulator wanted, including appointment of their officials and other things is concerned, that will be considered,” the official added.

The bill that will equally focus on improving consumer protection from spam and fraudulent calls, is aimed at becoming an umbrella legislation on all forms of communication or carriage of voice and data. In its initial form, the bill gave government the power to waive fee, interest, additional charges, penalty, or damages and even grant exceptions from the provisions of the bill when it becomes an Act.

The draft bill outlined that spectrum allocation can be conducted through auctions, administrative processes, or other mechanisms as decided by the government.

The bill may not be taken up during the ongoing session of Parliament, Mint had reported last month.

The postal services bill is likely to envisage revamping of the postal department as well as its key services, primarily parcel services that can be commercialized to compete with private players and a revenue generating division. Improvement of financial services for the rural areas through postal services may also be on the cards through the bill.

Queries to the communications ministry did not elicit a response as of Friday late evening.