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Source: The post Telecommunications Act of 2023 has been created, based on the article “Open up the playing field” published in “Indian express” on 12th January 2024.
UPSC Syllabus Topic: GS paper3- economy- infrastructure
News: The article discusses the Telecommunication Act 2023 in India, which replaces older laws and aims to modernize and improve the telecom industry.
What are the key provisions of the new Telecommunications Act of 2023?
What are the benefits of the New Telecommunication Act of 2023?
Modernization of Legal Framework: The Act updates the legal structure for telecoms, replacing outdated laws like the Telegraph Act of 1885, to better suit modern communication technologies.
Improved Spectrum Allocation: It introduces flexible spectrum allocation methods, crucial for effective deployment of communication technologies.
Enhanced Telecom Infrastructure: The Act focuses on building common ducts and cable corridors, significantly improving infrastructure for telecom services.
Promotion of Competition: By allowing new market entrants, the Act seeks to stimulate innovation and investment in the telecom sector.
Digital Bharat Nidhi Expansion: Redefining the use of USOF as Digital Bharat Nidhi, the Act aims for better utilization of funds, aiding in digital advancement.
For more information on USOF read here
Resource Mobilization for Upgrades: It emphasizes mobilizing resources for infrastructural upgrades in the heavily indebted industry, key for advancing technologies like 5G.
Encouraging Functional Separation: The Act promotes functional separation to lessen market concentration and support fair competition. It ensures that new service providers have equal access to crucial telecom infrastructure. Countries like Sweden, the UK, Australia, Ireland, and Poland have successfully applied this approach.
What are the issues with the new Telecommunications Act of 2023?
Privacy Concerns: The Act grants the government significant powers during public emergencies, potentially infringing on citizen privacy with minimal accountability.
Market Concentration Risks: Despite promoting competition, there’s a risk of market concentration, as seen in other countries using functional separation as a regulatory remedy.
Disproportionate Remedies: Over-regulation can lead to reduced investment and innovation, counteracting the Act’s intentions.
Limited 5G Expansion: Venture capitalists cite limited 5G connectivity beyond metros as a drawback, impacting investments in 5G startups (decreasing from $639 million in 2022 to $134.1 million in 2023).
Technological Distinction in Services: The Act lacks reflection of technological neutrality in communication service delivery, potentially hindering new service providers.
What should be done?
To foster India’s digital revolution, the Telecommunications Act 2023 must promote competition and upgrade infrastructure. It should focus on technology-neutral spectrum use, equitable infrastructure access, and integrate services like telecom and internet. The Act should encourage diverse technology use and support transition to fibre networks, ensuring sustained telecom industry growth.
Question for practice:
Discuss how the Telecommunication Act 2023 aims to modernize India’s telecom industry and its potential impact on the market and infrastructure development.
