2023 might just end up being remembered as the year the Indian government crippled the future of the Indian tech sector
Telecommunications Bill tabled in Lok Sabha. (iStock)
In the latest move to have complete control over data and communication, the government introduced the Telecommunications Bill 2023 in the Lok Sabha on Monday, 18 December, during the winter parliament session.
The new Bill, which seeks to replace the Indian Telegraph Act of 1885, the Indian Wireless Telegraphy Act of 1933, and the Telegraph Wires (Unlawful Possession) Act of 1950, was long overdue given the archaic nature of current legislation.
However, the new Bill has plenty of red flags that should ideally have rendered it dead on arrival. Unfortunately, seeing that it was brought in as a “money Bill” (rendering it free from scrutiny and amendments by the Rajya Sabha), it is clear that its passing will be a formality.
This should concern the country’s tech sector deeply, as the new Bill’s broad definitions, licensing requirements and overreaching provisions for the government leave a lot of scope for misuse, mistrust and misalignment.
For starters, its definition of what constitutes telecommunication is extremely broad:
“…transmission, emission or reception of any messages, by wire, radio, optical or other electromagnetic systems, whether or not such messages have been subjected to rearrangement, computation or other processes by any means in the course of their transmission, emission or reception.
“It further defines messages as “any sign, signal, writing, text, image, sound, video, data stream, intelligence or information sent through telecommunication.”
This means that while the Bill has not explicitly brought OTT communication services such as WhatsApp, Telegram, Gmail, and Zoom under its ambit, the broad definition of what constitutes a telecommunication service provider can invariably apply to them, too.
This effectively will bring not just telecom infrastructure operators under this Bill, but also a lot of tech companies and their user data along with it.
Under the section of authorisation, it mentions that “Any person intending to (a) provide telecommunication services; (b) establish, operate, maintain or expand telecommunication network; or (c) possess radio equipment, shall obtain an authorisation from the Central Government, subject to such terms and conditions, including fees or charges, as may be prescribed.”
While it goes on to say that different terms and conditions for authorisations might apply to different types of telecommunication services, the fact that government authorisation might even be required to run digital communication services such as chat messengers and email providers is very concerning.
If misused, this could, in effect, bring back the license raj of old to a burgeoning and enthusiastic tech sector and stifle competition in the long run.
UPDATE: The Telecom Bill is how, and it's a pro-telco, ANTI-INTERNET Bill. I'll explain how:
1. Covers all online services: Read these 3 definitions (message, telecom service, telecom), and because of how messaging is defined, apply it to email, cloud, SAAS, streaming etc10/n pic.twitter.com/sUrHkcV6W3
— Nikhil Pahwa (@nixxin) December 18, 2023
Finally, and most worryingly, is the provision the government has made for itself to take over any and all telecommunication service providers and/or intercept any message in the name of public safety and national security.
The Bill states: “On the occurrence of any public emergency, including disaster management, or in the interest of public safety, the Central Government or a State Government or any officer specially authorised on this behalf by the Central Government or a State Government, if satisfied that it is necessary or expedient so to do, by notification— (a) take temporary possession of any telecommunication service or telecommunication network from an authorised entity; or (b) provide for an appropriate mechanism to ensure that messages of a user or group of users authorised for response and recovery during a public emergency are routed on priority.”
This, in effect, can give it carte blanche control over any and all digital communication services operating in the country and allows it to access and intercept user messages.
While this provision is technically meant to be used only in situations where public safety or national security concerns exist, the Bill itself does not explicitly place a high bar on what constitutes such situations, thereby leaving it open for interpretation and misuse.
When you couple this with the Digital Personal Data Protection Act (passed in August this year), which provides government agencies with a wide latitude to access user data, massive concerns around data safety within India arise.
This is something the country’s tech sector will need to keep an eye on since trust will be a significant factor in the success of cross-border digital services and in helping Indian tech firms expand globally.
With the proliferation of Artificial Intelligence (AI), we are entering a whole new era of data consumption. This is a boom period in which India’s tech sector is well-positioned to be a market leader.
It has the startup ecosystem, the talent pool and investment resources to build and scale world-class products. However, if it really wants to be a global player, it also needs to be able to guarantee data safety for its users, both domestic and international.
With global geopolitical tensions rising, it is only likely that we will see more stricter requirements for securing global user data.
The current Bills rely heavily on the government’s goodwill and restraint, which will be heavily tested in a politically polarised climate like ours.
If the trust in data security in India is broken or the government over-reaches its control on digital service providers, it could impact the fortunes of the entire Indian tech ecosystem and severely stunt future growth.
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