Licensing and Regulation of Submarine Cable Landing in India

• 23 Jun 2023

Why in News?

The Department of Telecom (DoT) raised concerns about Indian International Long-Distance Operators (ILDOs) without any stake in submarine cable systems seeking clearances for laying and maintaining submarine cables in India.

• In this context, the Telecom Regulatory Authority of India (TRAI) has released recommendations on the "Licensing Framework and Regulatory Mechanism for Submarine Cable Landing in India”.

What are the Recommendations of TRAI?

• Two Categories of CLS:
  • Amending the ILD/ISP-A (international long distance/Internet service provider Category A) permits to include two categories of Cable Landing Station (CLS) locations — Main CLS and CLS “point of presence”.
    • Main CLS facility be mandated to seek all approvals for an international submarine cable (SMC) landing in India.
    • CLS ‘point of presence’ needs to allow lawful interception and meet the requisite security drill.
• Critical and Essential Service:
  • The submarine cable operations should be recognized as critical and essential services due to their crucial role in maintaining seamless national and international communication networks.
  • Submarine cable operations should have the highest level of importance for obtaining necessary permissions and security clearances.
• Proposed Legislative Amendment:
  • Addition of a section on "Submarine cable" and "Cable Landing Station" in the Indian Telecommunication Bill, 2022.
    • It will provide legal and regulatory support, contributing to the growth and robustness of the digital communications sector.
• Custom Duty and GST Exemptions:
  • TRAI proposes exemption from custom duty and GST for goods and items required for CLS, submarine cable operation, and maintenance.
  • This will address critical challenges in the sector, particularly related to cable repair and maintenance.

What is the Significance of the Recommendations?

• Strengthening Data Flow:
  • TRAI's recommendations have the potential to unlock the full potential of cross-border data flow, fuel innovation, and fortify India's position as a data powerhouse.
• Reduced Reliance on Foreign Providers:
  • The requirement for Indian entity-owned vessels for undersea cable maintenance will reduce delays and decrease reliance on foreign providers for repairing subsea cables.

What is a Submarine Communications Cable?

• About:
  • It is a cable laid on the seabed between land-based stations to transmit telecommunication signals across stretches of ocean and sea.
  • Modern submarine cables use fiber-optic technology. The optical fibre elements are typically coated with plastic layers and contained in a protective tube suitable for the environment where the cable will be deployed.
• Significance:
  • Compared to satellites, using internet connection through submarine cables is more reliable, cost efficient and of larger capacity.
• Examples:
  • MIST Submarine Cable System (connecting India with Myanmar, Thailand, Malaysia and Singapore)
  • Reliance Jio Infocomm’s India Asia Xpress (IAX) (India to the Maldives, Singapore, Sri Lanka and Thailand)
  • India Europe Xpress (IEX) (India to Italy via Saudi and Greece)
  • SeaMeWe-6 project (Singapore to France via India, Bangladesh, Maldives)
  • Africa2 Cable (India with the UK via several African countries

Source: PIB