The Hindu Business Line : On the right track

TRAI's unified licensing regime is a step in the right direction. And it is hoped that it does not run into rough weather, unlike the Communication Convergence Bill. G. Rambabu surveys the scene.

THE evolving telecommunication technologies, increasing bandwidth capabilities and embedded intelligence in elements of all types of carriage media are increasingly blurring the boundaries between different services and eliminating the importance of distance. It is, therefore, appropriate that the Telecom Regulatory Authority of India (TRAI) has started work on a common policy for all these various sectors, rightfully titled unified licensing regime.

The first step has already been implemented by way of the unified access service licence regime (USAL), introduced in mid-November that brought together both basic services and cellular services on a single platform. The next step, which will encompass national long-distance services, global mobile communication by satellite, very small aperture terminal (VSAT), radio paging, public mobile radio trunked service, Internet service providers and infrastructure providers, will bring about a radical transformation in the entire telecom sector.

While admittedly, this by itself would not bring about a full "convergence" policy, it is surely a step in this direction. In fact, by the time the much-delayed Convergence Bill is finally passed by Parliament, the unified licensing regime would already be in place, making the task that much more easy for a transition.

As can be seen from the table, all the different segment of the telecom sector have got different entry fee, licence fees and foreign direct investment (FDI) limits that need to be ironed out into one framework. Once that is done, its integration with the broadcasting sector (which is what full convergence is really about) can be made possible.

In any case, TRAI is working in the right direction and the fruits of its labour will be harvested this year. A unified licence would allow the licensee to provide any telecom service in the service area of service provider's choice. Normally, in other countries that have adopted regimes such as the unified licensing, the focus is on allowing easy entry and charging for spectrum separately.

It is just hoped that TRAI's work does not run into rough weather, like it has done for the Communication Convergence Bill.

The Bill, which has been in the offing for three years now, was drafted by eminent jurist Mr Fali S. Nariman after wide-spread consultations and discussions in various fora. However, it was introduced in Parliament, faced opposition, was referred to the Standing Parliamentary Committee and is now gathering dust.

The Bill has rightly noted that the existing laws were proving inadequate in dealing with the emerging scenario of convergence. Besides, the licensing powers and regulatory mechanisms for the telecom, IT and broadcasting sectors were currently spread over different authorities. In this context, a flexible type of legislation to accommodate and encourage permutation and combination of technologies and services was required.

The Bill proposed to repeal five laws — The Indian Telegraph Act, 1885, Cable TV Networks Act, 1995, Indian Wireless Telegraphy Act, 1933, the Telegraph Wires (Unlawful Possession) Act, 1950, and the Telecom Regulatory Authority of India Act, 1997. It had four main aims: to facilitate and enable access to a national communications infrastructure; to provide a wide choice of services to consumers; set up a regulatory framework that can tackle the convergence of technologies and spell out the powers and role of a single licensing; and a regulatory authority for all the three sectors.

These objectives were proposed to be achieved by the setting up an autonomous body to be known as the Communications Commission of India (CCI) with wide ranging powers, duties and functions. The CCI was to be headquartered in the Capital, with regional offices at Chennai, Kolkata and Mumbai.

The Bill proposed to replace the large categories of licences with five broad categories. These are: to provide or own network infrastructure facilities, to provide networking services, to provide network application services, to provide content application services and to provide value-added network application services.

It was also decided to exempt IT-enabled services from licensing and registration unless otherwise notified at a later date. The IT-enabled services specified in the Bill include call centres, e-commerce, telebanking, tele-education, teletrading, videotext and video-conferencing.

TRAI and the Telecom Dispute Settlement and Appellate Tribunal (TDSAT) were to be dissolved and proceedings pending under them transferred to the CCI and the Appellate Tribunal. The Bill also regulates the use of spectrum, communication services, network infrastructure facilities and wireless network. In other words, no person could use any part of the spectrum or possess any wireless equipment without a licence from the CCI.

The Bill allows any person licensed by the CCI to provide facility over or under public land after taking permission from the authorities subject to "reasonable conditions." In case of private land, consent of the owner has to be taken but the CCI can also compel an owner to do so after fixing a suitable remuneration.

However, the Parliamentary Standing Committee on IT, which discussed the draft bill, raised many objections and sought quite a few modifications. It noted that the CCI that is proposed to be set up for regulating the entire gamut of telecom, information technology and broadcasting services may turn out to be a hindrance to rapid evolution and convergence of technologies and services.

It stated in its report that the CCI can restrict the freedom of information for consumers and freedom of action for service providers if its powers are not used properly.

"The Commission will have far reaching jurisdiction over virtually every field of communication, including telecom, broadcasting, television, cable, wireless telephony, etc. It will be one of the most powerful authorities established in the country so far. But due to its vast responsibilities and many regional offices, it can become a monolith, with an ever-growing establishment and huge army of staff. Due to its vast powers and establishment, its over-arching powers can be misused through a tangle of rules, regulations, licences and registration requirements," it had been stated.

The report has also noted that by controlling appointments to the Commission, the Government of the day can exercise too much remote control over it. There can be a risk of excessive curbs over the independence and autonomy of the Commission as happened, for instance, with Prasar Bharati. All these factors need to be factored in while framing the final Act, it had noted.

In normal course of time, the Bill could have been tabled once again with the suggested modifications, however, the Information and Broadcasting Ministry was not happy. It was in favour of a separate regulator and policy regime for the broadcasting sector, separate from that for telecom and IT.

Whatever be the outcome of the Convergence Bill, it is gratifying to note that the Communications Ministry has not let it stand in the way of the development in the telecom and IT sectors. TRAI needs to be commended for undertaking the work on a unified licensing regime, which it is hoped will be an accelerator for the rapid growth in these sectors in the convergence era.