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Polity & Governance
Mahesh

01/10/22 06:23 AM IST

Draft Telecommunication bill,2022

In News 
  • The Ministry of Communications released a draft of the Indian Telecommunication Bill, 2022 for public comments.
Draft Proposals 
  • The draft is to update the extant regulatory framework in keeping with the advancements and challenges in the sector.
  • It looks to repeal three legislations and “restructure the legal and regulatory framework” for the telecommunications sector.
  • The draft Bill consolidates three separate acts which currently govern the telecommunication sector — the Indian Telegraph Act, 1885, Indian Wireless Telegraphy Act, 1933, and The Telegraph Wires (Unlawful Protection) Act, 1950.
  • The government has included internet-based and OTT communication services such as WhatsApp calls, Facetime, Google Meet etc under telecom services.
  • The telecom ministry has proposed a provision for refund of fees in case a telecom or internet provider surrenders his license.
  • In the event of payment default, and in extraordinary circumstances, including financial stress, consumer interest, maintaining competition in the sector, or reliability and continued supply of telecommunication services, the govt can defer the payment of such amounts, convert a part or all of the amounts payable into shares, write-off payable amounts or provide relief from payment.
  • It proposes to rename the Universal Service Obligation Fund (USOF) as Telecommunication Development Fund (TDF).
  • The USO fund is generated from the annual revenue of telecom services providers. The sums of money received towards the TDF will first be credited to the Consolidated Fund of India.
Telecom Industry in India 
  • The Telecom industry in India is the second largest in the world with a subscriber base of 1.17 billion as of 2022. India has an overall teledensity of 85.11%.
  • The industry’s exponential growth over the last few years is primarily driven by affordable tariffs, wider availability, the roll-out of Mobile Number Portability (MNP), expanding 3G and 4G coverage, and evolving consumption patterns of subscribers.
  • The Telecom sector is the 3rd largest sector in terms of FDI inflows, contributing 6.44% of total FDI inflow, and contributes directly to 2.2 million employment and indirectly to 1.8 million jobs.
  • Between 2014 and 2021, the FDI inflows in the Telecom sector rose by 150% to USD 20.72 billion from USD 8.32 billion during 2002-2014.
  • 100% Foreign Direct Investment (FDI) has now been allowed in the Telecom sector under the automatic route.
Source- The Hindu 

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