SECURITY AND COMPETITION: BALANCING THE TELECOM ACT

The Telecom Act 2023 strengthens security and consumer trust, but gaps in competition, OTT parity, and licensing stability raise new challenges.

- LT GEN DR SP KOCHHAR

In an era defined by hyper-connectivity, digital dependence touches every facet of life and business in India. Against this backdrop, the introduction of the Telecommunications Act, 2023, marked a pivotal legislative moment, meant to modernise the legal framework that governs an industry central to India’s digital ambitions. Yet, even with a refreshed framework, certain provisions have triggered deeper conversations around how the Act addresses national security, licensing and equitable competition.

Between 2021 and 2023, India’s telecom sector experienced a surge that exposed the limitations of its legacy regulations. Gross revenue climbed from Rs 3.33 trillion in FY2022-23 to Rs 3.36 trillion in FY2023-24, while total telephone subscribers grew from 1.17 billion to 1.19 billion in the same period.

Broadband subscriptions increased by 9% to 924 million, and the Number of Internet users rose 8.3% to 954 million. Data consumption exploded by nearly 22%, driven by rapid smartphone adoption and 5G rollouts. Foreign investments and strong user growth pointed to an industry in transformation. Yet, these dynamic trends underscored the urgent need for a modern, flexible telecom law to govern emerging technologies, consumer habits and sectoral expansion.

The need for a new telecom law was clear. The previous Indian Telegraph Act (1885) and Wireless Telegraphy Act (1933) were not equipped for a landscape disrupted by data, satellite Internet, Over-the-Top (OTT) platforms and the Internet of Things. Thus came the Telecommunications Act, 2023, built on the principles of inclusion, security, growth and responsiveness to the changing technological environment.

NATIONAL SECURITY AND COMPLIANCE COSTS