Reforming rights of way will support operators’ network rollouts, although changes to spectrum policy may prove contentious
Government seeks input on regulatory modernisation plan: On 23 July 2022, India’s Department of Telecommunications (DoT) launched a high-level, public consultation on the need for a “new legal framework” governing the telecoms industry. According to the ministry, new legislation should aim to establish enabling, future-proof policies for the development of the sector and the deployment of emerging technologies. It should consolidate existing laws while leveraging cases of global best practice, and be drafted in a plain and simple language so that any citizen can understand its contents. Though light on detail at this stage, simplification appears like it could be a key part of the DoT’s modernisation plan, particularly so given the proliferation of authorisations, licences, permissions and registrations used to oversee the telecoms sector.
Some current regulations hark back to a bygone era: In addition to profound changes in technology and an increase in the number of different regulations, the Indian telecoms market has undergone a rapid evolution. Total telecoms subscribers now exceed 1.17bn, representing a 19% CAGR over the past 25 years. The DoT believes telecoms networks and services have the potential to unleash the “true power of India’s economy”; however, the country’s regulatory framework is rooted in laws enacted long before it gained independence. The ministry therefore considers the time is right for a legislative update so that regulation reflects 21st century realities, while enabling digital governance and promoting investment.
Some reforms are set to benefit telcos, others may be contentious: While the six-page consultation includes few specific proposals, it does highlight several policy issues where reforms could benefit operators. One such area is rights of way, with the DoT aiming to make it easier to deploy telecoms infrastructure. That said, some issues may be contentious and likely to generate strong views from interested stakeholders. An example of this could be overhauling the Universal Service Obligation Fund (USOF), especially if India was to look to the US where the regulator is assessing potential financial contributions from big tech. Spectrum management may also prove controversial, with the DoT keen to ensure that it is assigned in a way that best serves the common good. As India has already reserved some 5G spectrum for private networks, operators will be paying close attention to the Government’s thinking in this area.
