Feedback on TRAI Consultation Paper on the Framework for Network Authorisations to be Granted Under the Telecommunications Act, 2023

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Feedback on TRAI Consultation Paper on the Framework for Network Authorisations to be Granted Under the Telecommunications Act, 2023

Vertika Misra

@vertika@nasscom.in

November 28, 2024

Public Policy

In October 2024, the Telecom Regulatory Authority of India (TRAI) released a Consultation Paper on “The Terms and Conditions of Network Authorisations to be Granted Under the Telecommunications Act, 2023” (Paper) soliciting feedback from the public on the draft. On November 19, 2024, nasscom submitted the feedback on the Consultation Paper.

The Telecommunication Act, 2023 provides that while making rules with respect to authorisation, the government shall provide for different terms and conditions of authorisation. We believe that this provision would be guided by the principle of activity-led and risk-based approach of regulation as we have seen in the recommendations of TRAI on the Framework for Service Authorisations to be Granted Under the Telecommunications Act, 2023. This approach —focuses on use cases rather than technologies themselves — can help balance benefits and risks while avoiding unintended consequences of heavy-handed interventions. Nasscom has consistently held this position in its representations, including the Telecommunications Bill (public consultation) and TRAI’s CPs with respect to the Telecommunications Act, 2023.

This approach assumes more importance, given the evolving technological landscape, especially in the domain of digital communications and growing demand for uninterrupted and low latency data connectivity to spur India’s data centre ecosystem. Rising consumer demands for ‘feature enhancement’ and ‘real-time service delivery’ have now necessitated leading-edge network architecture and quality, uninterrupted availability (to boost AI data centre ecosystem), control and scalability of networks of these digital enterprises for delivering uniform and world-class digital services to consumers worldwide.

However, some of our path dependencies emerging from the regulation of traditional licensed telecom service providers (TSPs) continue to exist. For instance, TSPs have been providing and managing networks for digital enterprises. Existing unified licensed framework (now being revamped by the Government of India in light of the 2023 Act) prevents non-licensed digital enterprises from owning or managing private enterprise networks. Further, the current unified license requires such TSPs to comply with various technical and security conditions and limitations meant for public networks. This is generally argued to indicate that all license conditions apply to TSPs equally for public as well as private networks, although several technical, security and other conditions in the license may not be commensurate with the ‘captive, non-public’ nature of private enterprise networks.

We recommended that, to cater to the changing technological landscape, India needs a nuanced approach (i.e., activity-led and risk-based) rather than the rigid framework applied to legacy telecommunications. Therefore, we believe that on CDNs and IXPs should not be regulated (i.e., no authorisation/registration). Also, digital enterprises should be permitted to use private network for captive consumption through a light-touch authorisation.

Our recommendations included the following services:

Content delivery networks (CDNs)

CDNs should not be brought under any kind of authorisation/registration regime.
This would align India with the global position where several nations like, Australia, South Korea, Norway, U.S. and European Union does not regulate CDNs with a view to spur investment, innovation, and competition.

Internet exchange points (IXPs)

IXPs should not be brought under any kind of authorisation regime.
They are set up to merely facilitate the flow of traffic without any connect with end user.
This would align India with the global position where jurisdictions including the U.S., U.K., Hong Kong, South Africa, Singapore, Japan, Brazil, etc. have not imposed regulatory/licensing requirements upon IXPs.

Captive Use Authorisation

Permit Captive Use Authorisation under the Telecommunications Act 2023 enabling Indian enterprises to own, establish and manage Private Enterprise Networks (subsea or terrestrial fibers) for exclusive internal use of the enterprise, and which do not interface with end users.
Since this authorisation will not have spectrum allocation and will be only for captive use (i.e., not connected to the public network), various related regulatory obligations may not be required/applicable under this authorisation.

Please see the attachment for our detailed submission and recommendations. For more details, please write to Vertika Misra at: vertika@nasscom.in and Sudipto Banerjee at: sudipto@nasscom.inwith a copy to policy@nasscom.in.

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Vertika Misra

Director - Public Policy