“NEW TELECOM POLICY 2018”

Submitted by:

Kumar Abhishek, B.A. L.L.B (Hons.)(1333)

Submitted to:

Ms. Sadaf Fahim

Faculty of Telecom and Media Law

This final draft for the fulfilment of project of Telecom and Media
Law

SEPTEMBER 2019

Chanakya National Law University

PATNA
 TABLE OF CONTENTS

TABLE OF CONTENTS............................................................................................................................... 2
DECLARATION BY THE CANDIDATE ......................................................................................................... 3
ACKNOWLEDGEMENT ............................................................................................................................. 4
OBJECTIVES OF THE STUDY ..................................................................................................................... 5
HYPOTHESIS ............................................................................................................................................ 5
RESEARCH METODOLOGY ....................................................................................................................... 5
SOURCES OF DATA .................................................................................................................................. 5
LIMITATIONS OF STUDY .......................................................................................................................... 6
SCOPE OF THE STUDY.............................................................................................................................. 6
CHAPTERISATION .................................................................................................................................... 7
CHAPTER 1: INTRODUCTION TO THE NEW TELECOM POLICY ............................................................ 7
CHAPTER 2: NEED FOR NDCP 2018 ..................................................................................................... 9
CHAPTER 3: KEY FEATURES OF NDCP 2018 ....................................................................................... 11
3.1 CONNECT INDIA.......................................................................................... 11
3.2 PROPEL INDIA.............................................................................................. 12
3.3 SECURE INDIA ............................................................................................. 12
CHAPTER 4: CHALLENGES IN THE TELECOM SECTOR........................................................................ 14
4.1 Investments ..................................................................................................... 14
4.2 Levies .............................................................................................................. 14
4.3 Spectrum prices ............................................................................................... 14
4.4 Finances........................................................................................................... 15
4.5 Facilities .......................................................................................................... 15
CHAPTER: CONCLUSION .................................................................................................................... 16
BIBLIOGRAPHY ...................................................................................................................................... 17

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 DECLARATION BY THE CANDIDATE

I, hereby, declare that the work reported in the L.L.B (Hons.) Project Report entitled
“NEW TELECOM POLICY 2018” submitted at CHANAKYA NATIONAL
LAW UNIVERSITY, PATNA is an authentic record of my work carried out under
the supervision of Ms Sadaf Fahim. I have not submitted this work elsewhere for any
other degree or diploma. I am fully responsible for the contents of my Project Report.

KUMAR ABHISHEK (1333)

B.A.LL.B (HONS.), 5th YEAR

CNLU, PATNA

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 ACKNOWLEDGEMENT

I would like to show our gratitude towards our guide Ms. Sadaf Fahim, Faculty of
Telecom and Media Law, under whose guidance, I structured my project.

I owe the present accomplishment of our project to our CNLU librarians, who helped
me immensely with materials throughout the project and without whom I couldn’t
have completed it in the present way.

I would also like to extend my gratitude to my friends and all those unseen hands that
helped me out at every stage of my project.

THANK YOU,

KUMAR ABHISHEK
SEMESTER -9th

CNLU, PATNA

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 OBJECTIVES OF THE STUDY

The study has following objectives:

• To understand the need for new telecom policy.

• To analyse key features of the new telecom policy.
• To find out the challenges associated with the implementation of this policy.

HYPOTHESIS

The researcher assumes that the new telecom policy would be a positive step taken by
the government which will bring developmental change in the telecom sector.

RESEARCH METODOLOGY

The researcher will emphasize and use the doctrinal method to do the research work.

SOURCES OF DATA

Being an explanatory research it is based on secondary data of journals, articles,

newspapers and magazines. Considering the objectives of study descriptive type
research design is adopted to have more accuracy and rigorous analysis of research
study. The accessible secondary data is intensively used for research study.

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 LIMITATIONS OF STUDY

The researcher has following limitations:

• The researcher is bound by the time (1 month) to do the research.

• The researcher will be confined to the doctrinal mode of research.

SCOPE OF THE STUDY

The research will be a source of further research.

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 CHAPTERISATION

CHAPTER 1: INTRODUCTION TO THE NEW TELECOM POLICY

The new telecom policy has been formulated, in place of the existing National
Telecom Policy-2012 and aims to facilitate India's effective participation in the global
digital economy. With a view to cater to the modern needs of the digital
communications sector of India, the Union Cabinet on Wednesday approved the
National Digital Communications Policy-2018 (NDCP-2018). The new telecom
policy has been formulated in place of the existing National Telecom Policy-2012 and
aims to facilitate India’s effective participation in the global digital economy. The
policy aims to ensure digital sovereignty and the objectives are to be achieved by
2022. Under the new telecom policy, the government aims to provide universal
broadband connectivity at 50 Mbps to every citizen. It has kept a target of providing 1
Gbps connectivity to all Gram Panchayats by 2020 and 10 Gbps by 2022.1

As the present world has entered the era of modern technological advancements in the
Telecom Sector such as 5G, IoT, M2M etc., a need was being felt to introduce a
'customer focused' and 'application driven' policy for the Indian Telecom Sector,
which can form the main pillar of Digital India by addressing emerging opportunities
for expanding not only the availability of telecom services but also telecom-based
services.

Accordingly, the new National Digital Communications Policy - 2018 has been
formulated, in place of the existing National Telecom Policy-2012, to cater to the
modern needs of the digital communications sector of India. The policy’s aims to
serve as the main pillar of Digital India by addressing emerging opportunities for
expanding not only availability of telecom services, but also telecom-based services.

The NDCP-2018 envisions supporting India's transition to a digitally empowered

economy and society by fulfilling the information and communications needs of
citizens and enterprises by establishment of a ubiquitous, resilient and affordable
digital communications infrastructure and services.

The ‘Customer focused’ and ‘application driven’ NDCP-2018 shall lead to new ideas
and innovations, after the launch of advanced technology such as 5G, IOT, M2M, etc.
which shall govern the telecom sector of India.

1
https://www.iasexpress.net/national-digital-communications-policy-2018/

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One of its objectives is to ensure connectivity to all uncovered areas and attract
investments of $100 billion in the Digital Communications Sector. Besides this, one
million manpower will be trained for building New Age Skill. It also aims at
expanding IoT ecosystem to 5 billion connected devices. The IoT is the network of
physical devices, vehicles, home appliances, and other items embedded with
electronics, software, sensors, actuators, and connectivity. This enables these things to
connect, collect and exchange data, creating opportunities for more direct integration
of the physical world into computer-based systems. IoT results in efficiency
improvements, economic benefits, and reduced human exertions.

Another target of the policy is to establish a comprehensive data protection regime for
digital communications that safeguards the privacy, autonomy and choice of
individuals. In this way, it will enforce accountability through appropriate institutional
mechanisms to assure citizens of safe and secure digital communications
infrastructure and services.

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 CHAPTER 2: NEED FOR NDCP 2018

• Having significant capabilities in both telecommunications and software, India

stands poised to benefit from harnessing new digital technologies and platforms
to unlock productivity, as well as to reach unserved and underserved markets;
thus, catalysing economic growth and development, generating new- age jobs
and livelihoods, and ensuring access to next generation services for its citizens.

• India's demographic profiles vary widely across various indices such as

literacy, economic conditions and urbanisation. It is important to promote
policies that increase opportunities for their social and economic development.
Accordingly, this policy aims for universal coverage rather than revenue
maximization.

• The rapid and unprecedented proliferation of the mobile phone, the internet,
social media platforms, and the rapid expansion of digital payments, data
consumption and generation across India indicate that the data economy and
digital technologies and services are widespread instruments of access and
empowerment for more than a billion Indian.

• It has been broadly estimated that a 10% increase in broadband penetration in a

country could potentially lead to an over 1% increase in GDP. 2 Therefore, a
consistent policy and principles framework is required to create a vibrant
competitive telecom market to strengthen India’s long term competitiveness.

• In order to expand mobile and broadband connectivity across the country, it is

necessary to explore and utilise the opportunities presented by next generation-
networks like 5G and satellite communications.

• As the world prepares for the fourth industrial revolution, India needs to be
readied to embrace this opportunity through the convergence of a cluster of
revolutionary technologies including 5G, the cloud, IOT and data analytics.

2
https://inc42.com › features › broadband-for-all-4-mn-jobs-by-2022-indus.

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 • India needs to promote and protect fair competition across the communications
and digital economy sector.

• Given the sector’s capital-intensive nature, the Policy aims to attract long-term,
high quality and sustainable investments by ensuring that the regulatory
structures and processes remain relevant, transparent, accountable and forward-
looking.3

• Additionally, the Policy aims to remove regulatory barriers and reduce the
regulatory burden that hampers investments, innovation and consumer interest.
The Policy also identifies steps to strengthen the sector’s institutional
mechanism and legislative framework.

3
Id.

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 CHAPTER 3: KEY FEATURES OF NDCP 2018

It envisages three Missions4:

3.1 CONNECT INDIA

• Creating Robust Digital Communications Infrastructure.

• National Broadband Mission (Rashtriya Broadband Abhiyan)- Provide

Universal broadband connectivity at 50Mbps to every citizen by 2022.

• BharatNet- Provide 1 Gbps connectivity to all Gram Panchayats of India by

2020 and 10 Gbps by 2022.

• GramNet – Connecting all key rural development institutions with 10 Mbps

upgradeable to 100 Mbps.

• NagarNet – Establishing 1 Million public Wi-Fi Hotspots in urban areas.

• JanWiFi – Establishing 2 Million Wi-Fi Hotspots in rural areas.

• Enable 100 Mbps broadband on demand to all key development institutions

including all educational institutions by 2022.

• Fibre First Initiative to take fibre to the home, to enterprises and to key
development institutions in Tier I, II and III towns and to rural clusters.

• Establishment of a National Digital Grid by National Fibre Authority.

• Strengthening Satellite Communication Technologies in India by reviewing

SATCOM policy, making available new spectrum bands, streamlining
administrative processes for assignment and allocations, clearances and
permissions related to satellite communication systems, etc.

4
www. dot.gov.in › whatsnew › national-digital-communications-policy-2018.

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 • Ensuring Customer Satisfaction, Quality of Service and effective Grievance
Redressal by establishing Telecom Ombudsman, framing a comprehensive
policy to encourage the adoption of environmental and safety standards and
incentivising the use of renewable energy technologies in the communications
sector.

3.2 PROPEL INDIA

• Enabling Next Generation Technologies and Services through Investments,

Innovation and IPR generation.

• Attract investments of USD 100 Billion in the Digital Communications Sector,

expand IoT ecosystem to 5 Billion connected devices, accelerate transition to
Industry 4.0 by 2022.

• Creation of innovation led Start-ups in Digital Communications sector.

• Creation of Globally recognized IPRs (Intellectual Property Rights) in India.

• Development of Standard Essential Patents (SEPs) in the field of digital

communication technologies.

• Train/ Re-skill 1 Million manpower for building New Age Skills.

3.3 SECURE INDIA

• Ensuring Sovereignty, Safety and Security of Digital Communications.

• Establish a comprehensive data protection regime for digital communications

that safeguards the privacy, autonomy and choice of individuals and facilitates
India’s effective participation in the global digital economy.

• Ensure that net neutrality principles are upheld and aligned with service
requirements, bandwidth availability and network capabilities including next
generation access technologies.

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• Develop and deploy robust digital communication network security
frameworks.

• Build capacity for security testing and establish appropriate security standards.

• Address security issues relating to encryption and security clearances.

• Enforce accountability through appropriate institutional mechanisms to assure

citizens of safe and secure digital communications infrastructure and services.

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 CHAPTER 4: CHALLENGES IN THE TELECOM SECTOR

4.1 Investments

Annual investments by mobile phone companies are in the region of around $10
billion annually, which the government aims to increase significantly. But it is to be
noted that the telecom industry is, mostly, in deep trouble5.

India’s top telecom company, Bharti Airtel, features in Credit Suisse’s list of stressed
companies.

4.2 Levies

The government is ambitious in plans with 5G, IoT, M2M and other technologies. But
the policy has still not cut the very high levels of government levies in this regard.
India’s levies, including the 18% GST, range from 29-32% as compared to just an
11% VAT rate in China.

4.3 Spectrum prices

There are also no significant plans in cutting high spectrum prices. While 100% of
spectrum put on auction in 2015 remained unsold due to high spectrum prices, this
was as high as 59% in 2016. No auctions could take place in 2017 or 2018 due to
telcos being cash-strapped.

Resultantly, revenues accruing to the government from the sector have fallen by
around 37% in just the last two years.

5
https://indianexpress.com › India.

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4.4 Finances

The precarious finances would mean an unhealthy position in terms of repayment of

bank loans.

More worrying is the ability of telecoms to make good their spectrum payment
obligations from earlier auctions. There is not much likelihood of this improving in
the immediate future.

4.5 Facilities

Little progress has been made in providing right-of-way for connecting telecom
towers with optic fibre.

Neither is there a progress in coming up with a sensible policy for the critical E and V
bands.

(Spectrum in E and V band can ease work of telecom operator from laying optical
fiber cable, and help them in providing last mile connectivity.

Data through E and V band can be transmitted with speed of around 1,000 MB per
second.)

Given these, getting the telecom back on track requires a lot more work on addressing
the financial and policy issues.

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 CHAPTER: CONCLUSION

As the present world has entered the era of modern technological advancements in the
Telecom Sector such as 5G, loT, M2M etc., a need was being felt to introduce a
'customer focused' and 'application driven' policy for the Indian Telecom Sector,
which can form the main pillar of Digital India by addressing emerging opportunities
for expanding not only the availability of telecom services but also telecom-based
services.

Accordingly, the new National Digital Communications Policy - 2018 has been
formulated, in place of the existing National Telecom Policy-2012, to cater to the
modern needs of the digital communications sector of India.

The vision behind this is to fulfil the information and communication needs of citizens
and enterprises through the establishment of a ubiquitous, resilient, secure, accessible
and affordable Digital Communications Infrastructure and Services; and in the
process, support India’s transition to a digitally empowered economy and society.6

Thus, the job of a national policy on digital communications is to prepare the country
and its citizens for the future.

Achieving these goals would require that the key stakeholders – namely the Centre,
the States, local governments, Telecom Service Providers, Internet Service Providers,
handset and equipment manufacturers, the academic community, the innovators and
start-ups come together to forge a coalition to deliver this national policy and
missions.

It is hoped that this policy will facilitate the unleashing of the creative energies of
citizens, enterprises and institutions in India and play a seminal role in fulfilling the
aspirations of all Indians for a better quality of life.

6
https://pib.gov.in/newsite/PrintRelease.aspx?relid=183711.

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 BIBLIOGRAPHY

Websites

• https://www.iasexpress.net/national-digital-communications-policy-2018/
• https://pib.gov.in/newsite/PrintRelease.aspx?relid=183711
• www. dot.gov.in › whatsnew › national-digital-communications-policy-2018
• https://inc42.com › features › broadband-for-all-4-mn-jobs-by-2022-indus.
• https://indianexpress.com › India

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