By Parnika Jhunjhunwala
The New Telecom Policy (NTP) is likely to be announced by March 2018. The government has already laid out the guidelines and roadmap for it. The policy will ensure privacy, data protection, and data security along with quality services, connectivity and affordable data for all. The new policy focuses on being more consumer-centric and promoting Digital India and 5G technology along with other key areas in the sector. The policy will also focus on promoting design development and manufacturing of telecom equipment in India. Furthermore, it is expected to come up with ideas ensuring financial stability required for bringing in investments.
Ease of payment for telecom sector
The government has brought about certain new features to the relief of the telecom sector. The most important and long-delayed being the extension of time-period for the payment of spectrum bought in auctions by telcos to sixteen years from the current ten years. Under the present system, telecom operators are required to make partial upfront payment, and rest of the payment in ten annual instalments. However, now that has been extended to a period of sixteen years. There is also word about lowering interest rate charged over penalties imposed on service providers. Such moves paint a healthier picture for the telecom sector.
The licence dilemma
The centre is mulling over the inclusion of One Nation, One Licence regime. This was also proposed in the NTP, 2012 but wasn’t implemented. The move is likely to remove the distinction between local and STD calls. This will be made possible as service providers will not need separate licences for operations in various parts of the country. Telecom representatives have also suggested that bifurcations around the types of licences and geographical split (telecom circles and service areas) be done away with.
The licence operators have also requested to level the playing field between mobile operators and over the top (OTT) players who provide internet-based calling and messaging like WhatsApp. They argue that the new policy should bring the OTT players under the licensing ambit just as mobile operators or else deregulate everyone, that is the ‘same service, same rules’ principle must prevail. Thus, we remain hopeful that the new policy will address this particular grievance of the telecom providers which affects their business model drastically.
Correcting and furthering the NTP, 2012
The NTP released in 2012 laid emphasis on providing last mile connectivity and bridging the digital divide in the country. Regulations introduced in the NTP, 2012 have burdened the Telecom Service Providers (TSPs) with additional levies which cut into their profit margins. There are quite a few proposals from the same year that are yet to be fulfilled including the abolition of roaming charges (only Airtel, Vodafone and Idea have abolished it), the target of 2 MBPS speed for customers, among others. Hopefully, the new policy will look into all the unresolved issues of the previous one. The upcoming NTP is said to be application-driven than connectivity-driven like the NTP, 2012. The Department of Telecom would also come out with a White Paper that will spell out what the government wanted to achieve through the policy.
A vision for the future
The government will also be doing a public consultation for the first time on the NTP, getting the views of the people as they too are stakeholders. The department is also considering setting up telecom Computer Emergency Response Team (CERT). The reason cited is that as the telecom industry grows and the network security becomes more important, a dedicated organisation which can look into telecom security and emergency responses will be needed. The policy is expected to include a package to boost domestic manufacturing of equipment to cut dependence on imports and create local jobs in the sector.
Scale of balance of the policy
In anticipation of the new policy, the biggest beneficiary at the receiving end of all the plans is the consumer. A boost in voice call volumes and reduction in bill shocks, free roaming and lower data plans, One Nation, One Licence—all the initiatives are expected to be consumer-centric. Though the policy is likely to be bent in favour of the consumers, the government has not ignored the TSPs. It has provided for extension in payment of spectrum charges and lowering of interest rates on penalties among others, which will uplift their position as well.
Nothing further can be said until December, by when the draft of the new policy is likely to be out. However, as of now, the proposal looks like it has the potential to rejuvenate the sector.
Featured Image Source: Visual Hunt
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