New Telecom Bill draft: TRAI-ing again for that right balance

The Telecom Regulatory Authority of India (Trai) has initiated consultations over regulating communication services provided by technology companies. This is a rethink on Trai's earlier position that apps like WhatsApp need not be regulated. Telcos have, however, been insisting that over-the-top (OTT) applications cannibalise their revenue by offering calling and messaging, services for which cellular networks need to procure licences and pay for spectrum. A new draft telecom bill has brought OTT apps into its ambit, although GoI has clarified this is not designed to impose 'same service, same rules'. The intent is to regulate OTT communications services to protect users on the lines permitted by existing laws and court rulings on interception. It also seeks to level the field on the revealed identity of callers across voice and data platforms. Trai is tasked by the Department of Telecom (DoT) with drawing up the best approach to meeting these objectives.

Trai will also need to - on prodding from courts - come up with procedures for restricting media access instead of wholescale internet shutdowns. The Supreme Court has allowed suspension of freedom of expression and trade only on the grounds of national security and the protection of citizens. India, however, has a reputation for internet shutdowns over reasons as flimsy as curbing cheating in exams. The apex court has asked GoI if a protocol exists to curb arbitrary internet shutdowns by local administrators. The ministry of electronics and information technology is the competent authority, and it is also relying on Trai to come up with technical solutions.

There are adequate economic and legal reasons for Trai to wade into the matter. But there is also the risk of regulatory overreach. OTT apps are regulated by the infotech law, and transferring existing provisions to the telecom bill will do no harm. GoI is streamlining technology legislation to incorporate privacy. Alongside consumer protection, the regulatory dust-up should level the playing field without stifling innovation.