HISTORY AND DEVELOPMENT OF TELECOM IN
INDIA
WHAT IS INCLUDED IN TELECOM
HISTORY:
In 1850 the first ever experimental telegraphic line was established between Calcutta
and diamond harbor. In 1854 the telegraph lines were open for the public.
In 1881 license was granted to the oriental telephonic company limited of England for
opening telephonic exchanges in Calcutta, Bombay, madras, Karachi & Ahmedabad.
The big changes in telecom industry happened with the introduction of electronic
exchanges in 1980s with setting up a xdot: Centre for Development of Telematics.
National Telecom Policy was announced in 1994 emphasising on telecommunication
for all and within the reach of all.
Since then the major legislations of the same were:
1. Indian Telegraph Act, 1885
2. Indian Wireless Telegraphy Act, 1933
3. Telecom Regulatory Authority of India Act, 1997 : Introduction of plurality
in the telecom sector
4. The Information Technology Act, 2000: Currently using.
Factors responsible for boon of the industry:
1. Change from fixed license fee to revenue share
2. General growth of the industry
3. Issuance of licenses in 2002
4. Liberalization of foreign investments
Biggest change in telecom was allowing 100% foreign direct investments (FDI) without
prior approval.
DEPARTMENT OF TELECOM:
Department of telecom has made a report in the renewal of telecom rules to be updated
along the lines of -
1. Innovation
2. Change in technology
3. Ease of the laws
4. Investments
The government has proposed that the new agenda to be framed in simple language for
better understanding and clarity.
Some aspects that the departments wishes to address in near future are:
1. Spectrum projects and consumption
2. Rights of way
3. Infrastructural developments
4. Safety and security
LANDMARK JUDGMENTS:
1. In a landmark case of 1998, VSNL (Videsh Sanchar Nigam Ltd.) audited customers
to not use its internet for telephone or fax. However, the ban on the said websites were
lifted after a writ petition in high court.
2. In Muthukumar V. Telecom Regulatory Authority of India, a writ petition was
filed to ban the application Tik Tok. As an interim measure the Madras HC ordered a
ban on the same which is continued till date.
3. In 2022 the SC dismissed the appeal by Vodafone Idea and held that consumer
complaints against telecom industry are maintainable before consumer forum &
commission.
MOST RECENT UPDATE
The Telecommunication Act 2023 was passed in parliament in December of 2023 and got the
presidential assent the same month. It supersedes the existing and archaic regulatory
framework for the telecommunication sector, based on the Indian Telegraph Act, of 1885, the
Wireless Telegraphy Act (1933), and the Telegraph Wires (Unlawful Possession) Act (1950).
ANALYSIS/ PERSPECTIVE:
Govt. granted investment of 1.65 billion USD for the telecom sector.
A positive effect of the investment in the sector has prompted the entry of several
global players into the manufacturing of mobile devices and components.
Protects and generates employment opportunities, promote competition in telecom
market, infuse liquidity, increase investment & reduce the regulatory burden of the
telecom industry.
Key reforms: {Telecom reforms 2021.}
E- KYC introduced as a requirement to
a. obtain connection under unified license/ unified service license.
b. OTP verification
Telecom dispute settlement appellant tribunal (TDSAT): Telecom regulatory authority
of India act established this tribunal to assist the cases.
India is the second largest telecommunications market in the world with user base of at least
1.20 bilion. It is also the second highest revnue earner for government after income tax.
CHALLENGES
SUGGESTIONS
TELECOMMUNICATION AND BROADCASTING
Telecommunications and broadcasting in India are critical sectors that play a pivotal role in
connecting people, disseminating information, and facilitating economic growth.
Telecommunications:
Telecommunications refer to the transmission of information over long distances using
various mediums such as telephone, radio, television, and the internet. In India,
telecommunications infrastructure is vital for economic development, social connectivity, and
access to information.
Broadcasting:
Broadcasting involves the distribution of audio and video content to a wide audience through
radio waves or digital signals. Broadcasting services include radio, television, satellite, and
online streaming platforms. In India, broadcasting plays a crucial role in disseminating news,
entertainment, and educational content to diverse audiences.
REGULATORY FRAME WORKS:
Telecom Regulatory Authority of India (TRAI):
The Telecom Regulatory Authority of India (TRAI) is a statutory body established to regulate
the telecommunications sector in India. Its primary responsibilities include:
1. Formulating policies for competition, efficiency, and consumer welfare in telecom.
2. Licensing and regulating service providers like telecom operators and ISPs.
3. Setting tariffs for affordability and fair competition among providers.
4. Monitoring service quality and enforcing standards for customer satisfaction.
5. Resolving consumer grievances through complaint redressal regulations.
6. Advising the government on spectrum allocation and industry trends.
TRAI plays a crucial role in promoting the growth and development of the
telecommunications sector in India while safeguarding the interests of consumers and
fostering a competitive and vibrant telecom market.
Ministry of Information and Broadcasting (MIB):
The Ministry of Information and Broadcasting (MIB) in India oversees policies and
regulations related to media, broadcasting, and advertising. Its responsibilities include:
1. Regulating broadcasting services, including television, radio, and DTH.
2. Allocating and managing spectrum for broadcasting and telecommunication.
3. Enforcing advertising standards and guidelines.
4. Promoting media literacy and awareness.
5. Supporting the film industry and overseeing film certification.
6. Representing India in international media forums and agreements.
The MIB plays a vital role in ensuring access to information, upholding media ethics, and
promoting the growth of the media and entertainment industry in India.
LANDMARK JUDGEMENTS:
1. Association of Unified Telecom Service Providers of India v. Union of India
(2012):
This case addressed issues related to spectrum allocation and licensing in the
telecommunications sector, highlighting the need for transparent and fair
allocation policies. 2G scam
2. Reliance Telecom Ltd. v. Union of India (2013):
This case dealt with the cancellation of telecom licenses following the 2G
spectrum allocation scam, highlighting the need for transparency and
accountability in licensing procedures.
3. Reliance Jio Infocomm Ltd. v. Bharti Airtel Ltd. (2018):
• This case involved a dispute between Reliance Jio and Bharti Airtel regarding
alleged predatory pricing practices in the telecom sector.
• The case raised issues related to competition law and anti-competitive
behavior in the telecommunications market.
4. Secretary, Ministry of Information & Broadcasting v. Cricket Association of
Bengal (1995):
The Supreme Court addressed the regulation of broadcasting rights for
sporting events, emphasizing the importance of balancing commercial
interests with public access to live broadcasts.
5. Star India Pvt. Ltd. v. Department of Industrial Policy and Promotion (2009):
The Supreme Court clarified the regulatory framework for foreign direct
investment (FDI) in broadcasting and media services.
6. Bharat Sanchar Nigam Ltd. v. Union of India (2006):
TRAI's role in regulating tariffs and ensuring fair competition.
7. Vodafone Idea Ltd. v. Department of Telecommunications (2019):
This case clarified the legal obligations regarding license fees and spectrum
usage charges for telecom operators.
8. Zee Telefilms Ltd. v. Union of India (2005):
The Supreme Court addressed issues related to content regulation and
censorship in broadcasting, affirming the freedom of expression subject to
reasonable restrictions in the interest of public morality and decency.
9. Tata Sky Ltd. v. Broadcast Audience Research Council (BARC) India (2020):
• Tata Sky filed a lawsuit against BARC India, alleging discrepancies in
television ratings and audience measurement practices.
• The case brought attention to the reliability and accuracy of television
audience measurement systems in the broadcasting sector.
