Telecom Regulatory Authority of India Repealing Regulations, 2023 | 02 Aug 2023

Source: PIB

Why in News?

Recently, the Telecom Regulatory Authority of India (TRAI) took a significant step in modernizing the regulatory landscape by issuing the Telecom Regulatory Authority of India Repealing Regulations, 2023.

• This regulation aimed to repeal the outdated Regulation on quality of service of dial-up and leased line internet access service, 2001, which had been in effect since December 10, 2001.

How was Dial Up and Leased Line Internet Access Regulated, and Why is it Now Outdated?

• The Regulation on quality of service of dial-up and leased line internet access service, 2001, was initially introduced to govern the quality of internet services provided by Basic Service Operators and Internet Service Providers (ISPs) in India.
  • The regulation applied to all providers, including the incumbent operators such as BSNL, MTNL, and VSNL.
• When the regulations were introduced, dial-up services were the predominant means of accessing low-speed internet. However, over time, the telecommunication networks have undergone significant transformations.
  • The emergence of various technologies, including FTTH, LTE, and 5G, has made high-speed broadband services widely available to consumers.
• Moreover, leased line access services are now predominantly offered by Internet Gateway Service Providers (IGSPs) to enterprises, and these services are governed by Service Level Agreements (SLAs).
  • SLAs inherently include provisions to safeguard concerns regarding service quality, making the 2001 regulation less relevant in the current context.
• With this regulatory burden lifted with Telecom Regulatory Authority of India Repealing Regulations, 2023, service providers can focus more on delivering cutting-edge services and improving customer experiences.
  • Additionally, the telecommunications sector may experience increased competition and innovation, leading to enhanced service quality, expanded coverage, and potential cost efficiencies.

What are the Current Major Challenges Related to Telecom Sector?

• Financial Stress: The telecom sector in India has been grappling with intense competition, low tariffs, and high debt burdens.
  • Several telecom companies were facing financial challenges, and some even declared bankruptcy or merged with other players to stay afloat.
• Rural-Urban Disparity: Although adequate tele-density has been achieved, there is a significant discrepancy in the share of telecom subscribers between urban (55.42%) and rural (44.58%) areas of India.
  • Also, fixed broadband penetration in the country is among the lowest in the world at only 1.69 per 100 inhabitants.
• Issue with Over-the-Top Platforms (OTT): OTT Communication service platforms like WhatsApp and Telegram use the network infrastructure of telecom service providers to provide services such as voice calls and SMS services.
  • Telecom Service Providers (TSPs) allege that these features result in a double whammy for them as they cut into their sources of revenue (voice calls, SMS).
• Mismanagement of E-waste: Telecom industry impacts the environment in multiple ways, including through the generation of e-waste. In India, more than 95% of e-waste is illegally recycled by informal waste pickers.

Way Forward

• AI-Enabled Network Management: Implement AI-driven network management systems that can optimize network performance, predict maintenance needs, and ensure seamless connectivity for users.
• Telecom Infrastructure on Wheels: Create mobile telecom infrastructure units that can be deployed to temporary or underserved locations, such as construction sites, festivals, or disaster areas, to provide reliable connectivity.
• Streamlined Regulatory Processes: Simplify and expedite regulatory approvals for telecom infrastructure deployment, reducing bureaucratic hurdles and promoting faster network expansion.
  • Also, bringing OTT communication services under the ambient of regulation is the need of hour.