Introduction
This Compendium consolidates all the key developments pertaining to the Telecommunications sector which were circulated as JSA Newsletters/Prisms during January- June 2024.
Telecom sector – Highlights from the interim budget 2024-2025
On February 1, 2024, the Government of India (“GoI”) introduced the Interim Budget (“Budget”) for the financial year 2024-2025. The Budget envisages an allocation of INR 1,11,876.67 crore (Indian Rupees one lakh eleven thousand eight hundred seventy-six crore sixty-seven lakh) [approximately USD 13,500 million (US Dollars thirteen thousand five hundred million)] for expenditure. In comparison with the previous financial year's budget of INR 98,359.41 crore (Indian Rupees ninety-eight thousand three hundred and fifty- nine crore forty-one lakh) [approximately USD 11,850 million (US Dollars eleven thousand eight hundred and fifty million)], there is an increase of more than INR 13,000 crore (Indian Rupees thirteen thousand crore) [approximately USD 1,567 million (US Dollars one thousand five hundred sixty-seven million)] in the current allocation.
The total net allocation for the Department of Telecommunications (“DoT”) includes an additional provision of INR 17,000 crore (Indian Rupees seventeen thousand crore) [approximately USD 2,050 million (US Dollars two thousand and fifty million)] amounting to INR 1,28,876.67 crore (Indian Rupees one lakh twenty-eight thousand eight hundred seventy-six crore sixty-seven lakh) [approximately USD 15,530 million (US Dollars fifteen thousand five hundred and thirty million] in total. This additional provision is made from the balances available under the Universal Service Obligation Fund (“USOF”) and will be utilized for various schemes under the USOF, such as compensation to Telecommunication Service Providers (“TSPs”) and Bharatnet.
The GoI also aims to collect an estimate of INR 1,20,267.31 (Indian Rupees one lakh twenty thousand two hundred and sixty-seven crore thirty-one lakh) [approximately USD 14,490 million (US Dollars fourteen thousand four hundred and ninety million] as revenue from the telecom sector, which is approximately 30% greater than the revenue target of FY 2023 – 2024 budget, which amounted to INR 93,541.01 crore (Indian Rupees ninety-three thousand five hundred and forty-one crore one lakh) [approximately USD 11,272 million (US Dollars eleven thousand two hundred seventy-two million)].
To encourage the growth of the telecom sector, INR 400 crore (Indian Rupees four hundred crore) [approximately USD 48 million (US Dollars forty-eight million)] are allocated for research and development of projects to be implemented under the USOF, which is 4 (four) times the amount allocated in the previous budget. USOF aims to provide widespread access to information and communication technology all over the nation, including rural and remote areas with challenging terrain/ borders, to ensure network connectivity and access to all.
The Centre for Development of Telematics is allocated INR 500 crore (Indian Rupees five hundred crore) [approximately USD 60 million (US Dollars sixty million] which is an INR 50 crore (Indian Rupees fifty crore) [approximately 6 million (US Dollars six million)] reduction from the last budget.
The domestic industry incentivisation scheme is allocated INR 1910.80 crore (Indian Rupees one thousand nine hundred ten crore eighty lakh) [approximately USD 230 million (US Dollars two hundred thirty million] which is more than thrice the amount previously allotted. Out of the entire amount, INR 34.46 crore (Indian Rupees thirty-four crore forty- six lakh) [approximately USD 4.2 million (US Dollars four million two hundred thousand] is set aside for Technology Development and Investment Promotion, and INR 70 crore (Indian Rupees seventy crore) [approximately USD 8.4 million (US Dollars eight million four hundred thousand)] is set aside for the Champion Service Sector Scheme. The remaining INR 1806.34 crore (Indian Rupees one thousand eight hundred and six crore thirty-four lakh) [approximately USD 217 million (US Dollars two hundred seventeen million)] is earmarked for the Product Linked Incentive (“PLI”) Scheme. The increased allocation towards the PLI Scheme is a step towards the promotion of the GoI's Make-In-India policy, which will increase capital investment and import substitution in the telecom sector.
The GoI allocated INR 8500 crore (Indian Rupees eight thousand five hundred crore) [approximately USD 1,024 million (US Dollars one thousand twenty-four million)] for Bharatnet, which is INR 3,500 crore (Indian Rupees three thousand five hundred crore) [approximately USD 421 million (US Dollars four hundred and twenty-one million)] increase from the previous FY 2023 – 2024 budgetary allocation of INR 5,000 crore (Indian Rupees five thousand crore) [approximately USD 603 million (US Dollars six hundred and three million)]. Bharatnet aims to establish telecom connectivity and broadband in all rural towns and villages in India and this raise in its budget is an impetus to fulfilling its cause.
While INR 2.92 crores (Indian Rupees two crore ninety-two lakh) [approximately USD 351,860 (US Dollars three hundred fifty-one thousand eight hundred sixty)] are allocated for developing 5G Connectivity Test Bed, experts are hopeful that an additional budget will be allocated towards further development of 5G infrastructure, during the year.
A glance at the Budget's allocation showcases an effort towards creating greater opportunities for domestic producers which will result in greater employment. Projects developing nationwide telecom infrastructure and domestic industry are being prioritised to attain optimal growth in the telecom sector.
Connectivity to access service Virtual Network Operators from more than one Network Service Operators
The Telecom Regulatory Authority of India (“TRAI”) through its notification dated February 23, 2024, released the Consultation Paper on “Connectivity to Access Service Virtual Network Operators (“VNOs”) From More Than one Network Service Operators (“NSOs”)” (“Consultation Paper on Connectivity from Multiple NSOs”). The DoT sought the recommendations of TRAI to allow Unified License VNOs (“UL (VNO)”) licensees holding Access Service (“AS”) authorisation to enter into agreements with multiple NSOs to obtain connectivity and provide different services within a single License Service Area (“LSA”).
Until 2013, the GoI granted only standalone licenses to various TSPs - such as AS, internet services and national and international long-distance services. Then the Unified License (“UL”) regime was introduced which assisted TSPs to provide a range of services under the UL umbrella. Later in 2016, VNO was introduced under the UL which allowed TSPs to provide services without owning its networks and by utilising its parent NSO.
Currently, UL (VNO) only allows for the holders to take AS authorisation and connectivity from one NSO in a specific LSA. In such a situation, if a UL (VNO) licensee obtains wireline AS connectivity from one NSO in an LSA and intends to obtain wireless AS connectivity from another NSO in the same LSA, they are not permitted to do so.
The Consultation Paper on Connectivity from Multiple NSOs sought the views of the stakeholders broadly on the following:
- the maximum number of NSOs from whom a UL (VNO) licensee holding AS authorization can be permitted to obtain connectivity in an LSA for providing wireline AS;
- the terms and conditions for permitting multiple connectivity if more than one NSOs is allowed to provide wireline access;
- whether a UL (VNO) licensee holding AS authorization in an LSA should be allowed to take wireless AS from one NSO and wireline AS from another NSO in the same LSA;
- the terms and conditions for permitting to obtain such wireless AS and wireline AS connectivity from multiple NSOs in the same LSA; and
- any other relevant issues or suggestions related to the parenting of licensees holding AS authorization under UL (VNO).
Introduction of Calling Name Presentation service in Indian Telecommunication Network
TRAI through its notification dated February 23, 2024, released the Recommendations on “Introduction of CNAP Service in Indian Telecommunication Network” (“CNAP Recommendations”).
In India, AS Providers (“ASPs”) provide calling line identification presentation supplementary services, which ensures that all receivers of calls are able to view the number from which they receive incoming calls. However, this proved ineffective in its primary objective of identification of callers and the concerns surrounding Unsolicited Commercial Communication (“UCC”) from unregistered telemarketers, IT enabled system calls or robocalls, and fraudulent communication loom over the telephone consumers, especially as many of these bypasses the do-not- disturb feature. Even though there are third party applications that provide name identification services, the details for the caller names are crowdsourced and hence not accurate.
In 2022, the DoT requested TRAI to provide its recommendations on the feasibility of Calling Name Presentation (“CNAP”) in Indian telecommunication network. CNAP supplementary services would allow the subscribers to identify the calls received by name which are sourced from the customer application forms.
Subsequently, TRAI published a paper calling for recommendations from the stakeholders on the matter. The issues for consultation raised by TRAI were broadly along the lines of the need for CNAP supplementary services, whether they are to be mandatory and the need to acquire consent of telephone customers for activation of these services. These CNAP Recommendations have been released pursuant to the inputs received from stakeholders on a consultation paper that was issued in this regard.
The CNAP Recommendations broadly cover the following:
- the need to introduce CNAP supplementary services to the Indian telecommunication network and the need for all ASPs to provide these services to their telephone subscribers upon request;
- the calling name of each telephone subscriber is required to be provided by the originating ASPs;
- the name identity information provided by telephone subscribers in the customer application form is to be used for the purpose of In case the legal name of the telephone subscriber is changed, a suitable mechanism is recommended to be implemented by ASPs to amend such information;
- considering that the Indian telecommunication network is still based on circuit switched core, the CNAP supplementary services are required to be implemented as per the technical model instructed by TRAI;
- in case of subscriber entities holding bulk connections and business connections, a facility to present their ‘preferred name' in place of the name appearing in the customer application form is suggested;
- prior to the implementation of CNAP supplementary services on a pan India basis, a trial and assessment of the implementation is required to be conducted in a selected LSA with the subscriber bases of all TSPs in that LSA;
- post acceptance of these CNAP Recommendations, the GoI is required to issue a cutoff date for making CNAP features available in all devices sold in India; and
- the relevant provisions for enabling CNAP features are required to be added to the respective telecom service licenses.
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