SUMMARY
In the draft Telecom Bill, the government has proposed to remove the second, third, fourth and fifth provisos from Section 11 (1) of the TRAI Act, 1997
These provisos dictate that DoT must seek the recommendations of the watchdog on certain matters but removing those may give DoT overriding powers
The draft Telecom Bill was brought earlier this year by the DoT, introducing long-overdue reforms in the telecom sector
The Department of Telecommunications (DoT) will seek to address the concerns of the Telecom Regulatory Authority of India (TRAI) about a possible dilution of power by some of the provisions in the draft Indian Telecommunication Bill, 2022.
The draft telecom bill was brought earlier this year by the DoT, introducing long-overdue reforms in the telecom sector. However, some of the clauses of the draft bill have set the department and the sector watchdog on a collision course.
Though, media reports do suggest that the sector watchdog might still reach out to the Prime Minister’s Office (PMO) for a resolution of the matter
Though, ET reports that the chances of a conflict are slim, citing an official from the department. The publication adds that TRAI is concerned about the clauses that seek to give DoT power over issues such as tariffs and the quality of service (QoS).
Right now, these issues fall within TRAI’s purview. The DoT has reportedly shared the draft telecom bill with the sector watchdog for comments. Earlier this month, the department extended the deadline for public comments on the bill to October 30.
TRAI’s Concerns
Incidentally, TRAI is concerned about the amendments being made to the TRAI Act of 1997, which saw the formation of the watchdog. The draft telecom bill proposes seven amendments to several sections of the Act, while also proposing to delete six provisos.
According to the Broadband India Forum (BIF), this might undermine TRAI and dilute its powers within the telecom sector and requires a critical review. “The Draft Telecom Bill provisions propose to take away TRAI’s statutory independence and seek to make it subservient to the Government,” added the industry body.
In the draft telecom bill, the government has proposed to remove the second, third, fourth and fifth provisos from Section 11 (1) of the TRAI Act of 1997.
These provisos dictate that DoT must seek the recommendations of the watchdog on matters including the need and timing of introducing new service providers and the terms and conditions of the licence to a service provider. Further, these provisos also provide the timelines and turnaround times for the recommendations.
Earlier, the BIF said that the draft bill proposes to remove the non-obstante provisions and provisos to Section 11(1) of the TRAI Act, which pertains to regulatory safeguards and maker and checker balance. These provisos have been instrumental in bringing the sector to where it is today, BIF added.
TV Ramachandran, president of Broadband India Forum had said earlier that the provisions to amend the TRAI act appear to be prohibitive rather than enabling for the larger digital ecosystem.
“The provisions seem to take us back to the pre-1997 era by diluting the powers of the Regulator viz. Section 11(1) of TRAI Act. This could lead to damage to investor confidence and undermine the independence of the Regulatory Authority, owing to the deletion of provisions which enable proper checks and balances,” he added.
More importantly, the draft telecom bill also proposes to omit the proviso in Section 4, which talks about the appointment of the TRAI chairman. Presently, the TRAI Act only allows a secretary-level bureaucrat to be appointed as TRAI chairman. However, the omission of the proviso opens the position for anyone and dilutes it as well.
In essence, the draft telecom bill makes TRAI toothless, which is a concern for the telecom bodies. Right now, the DoT refers all issues to TRAI for reference, but with such a powerless watchdog, the department might not be able to avoid future scrutiny, as it has done so far.
