Tec Apex
Telecom Regulatory Framework in India
1. Introduction
The mobile phone has made a paradigm shift in the life of Indians. It is one of the major infrastructure drivers like power, road etc. which are the critical components of overall socio economic development of the nation. Indian mobile industry has come a long way during the last 15 years and it is considered as a poster boy of Reforms and Liberalization. The regulatory and policy changes of the Government, entrepreneurship of our service providers have played a major role in this phenomenal growth during the last 15 years. The key regulatory bodies of the telecom industry are the Department of telecom which is the licensor, TRAI, which functions as the regulator and TDSAT which is the judiciary body.
2. Department of Telecom (DoT)
The DoT comes under the purview of Ministry of Communications and Information Technology. The Department of Telecom formulates developmental policies for the accelerated growth of the telecommunication services. The Department is responsible granting licenses for various telecom services like Unified Access Service Internet and VSAT services, managing radio frequency in close coordination with the international bodies and enforcing wireless regulatory measures by monitoring wireless transmission of all users in the country.
DoT has got five major divisions to carry out these tasks.
a. Wireless Planning Coordination Wing (WPC)
The WPC Wing of the Ministry of Communications, created in 1952, is the National Radio Regulatory Authority responsible for Frequency Spectrum Management, including licensing and caters for the needs of all wireless users in the country. It exercises the statutory functions of the Central Government and issues licenses to establish, maintain and operate wireless stations.
WPC is divided into major sections like
- Licensing and Regulation,
- New Technology Group and
- Standing Advisory Committee on Radio Frequency Allocation (SACFA).
SACFA makes the recommendations on major frequency allocation issues, formulation of the frequency allocation plan, making recommendations on the various issues related to International Telecom Union (ITU), sorting out problems referred to the committee by various wireless users, issues clearance of all wireless installations in the country etc.
b. Telecom Engineering Center (TEC)
TEC is a technical body representing the interest of Department of Telecom, responsible for formulating specification of common standards with regard to Telecom network equipment, services and interoperability, issuing interface approvals, and providing technical support to DOT,TRAI and TDSAT .
c. C-DoT
Center for development of Telematics (C-DoT) is an R&D unit under the Department of Telecom.
d. Public Sector Undertakings
The DoT has the public sector undertakings under its fold.
- Bharat Sanchar Nigam Limited (BSNL)
- Mahanagar Telephone Nigam Limited (MTNL)
- Indian Telephone Industries (ITI)
- Telecommunications Consultants India Limited (TCIL)
e. TERM cell (VTM)
In 2004, The Department of Telecom created four Vigilance Telecom Monitoring Cells (VTM) to monitor and control illegal and clandestine telecom operations in the country. Later on the VTM cells were increased to 34 and the scope increased to other activities like analysis of call and subscription data, monitoring of network parameters, customer document verification and grievance redressal of the subscribers. These VTM cells were later rechristened as Telecom Enforcement Resource and Monitoring Cells (TERM) in 2008.
3. Telecom Commission
The Telecom Commission was set up by the Government of India in 1989 with administrative and financial powers of the Government of India to deal with various aspects of Telecommunications. The Telecom Commission is responsible for policy formulation, licensing, wireless spectrum management, administrative monitoring of PSUs, research and development and standardization.
4. Telecom Regulatory Authority of India (TRAI)
TRAI was set up in 1997 by the government of India as an independent regulator of the business of telecommunications in the country. TRAI is mandated to provide an effective regulatory framework and adequate safeguards to ensure fair competition and protection of consumer interests. The mission of TRAI is to create and nurture such conditions that encourage the growth of the telecommunications sector in India so that the country can play an important role in the world telecommunications society. The main objective of TRAI is to form a transparent and fair policy environment that encourages fair competition.
TRAI’s powers and functions includes settlement of disputes that arise between service providers, maintaining a register of interconnect agreements, and give advice to the government at the center on subjects that are connected with the development of the telecommunication technology. TRAI issues large number of directives, regulations, and orders that deal with various subjects such as interconnection, service quality, and tariff.
5. Telecom Disputes settlement & Appellate Tribunal (TDSAT)
TDSAT was set up in May 2000 by the government of India to adjudicate over disputes that arise in the telecommunication sector. TDSAT was established with the view to protect the interest of the consumers and service providers of the telecommunication sector and also to encourage and ensure the growth of the telecommunication sector. The chairperson of TDSAT is appointed from the ranks of chief justice of a High Court or a Supreme Court judge and holds office for a period of 3 years. The TDSAT can adjudicate any disputes that arise between a group of consumers and service providers, a licensee and a licensor, and also between two or more than the service providers. The power and function of Telecom Disputes Settlement & Appellate Tribunal includes that it can hear the appeal and also dispose appeals that are against any order, direction, or decision of the TRAI.
6. Non reglutory bodies
a. Cellular Operators Association of India (COAI)
The COAIwas set up in 1995 as a registered non- governmental, and non-profit society. COAI is the official voice for the cellular industry in India and it interacts on its behalf with the licensor, the telecom industry associations, the management spectrum agency, and the policy makers. The core members are Aircel, Airtel, Idea, Vodafone, Videocon, Loop and Spice. The tower telecom companies and telecom equipment manufacturers are also part of this association.
b. Association of Unified Telecom Service Providers of India (AUSPI)
AUSPI is the representative industry body of Unified Access Service Licensees providing telecom services in the country with CDMA and GSM technology, fixed line services and value added services. The Association interacts on policy and regulatory issues with various Government bodies such as the Department of Telecommunications, Telecom Regulatory Authority of India and other apex industry organizations on behalf of its members. The Association formulates expert opinion on industry issues and submits recommendations to the concerned authorities. The members of AUSPI are Reliance Communications, HFCL, Tata Tele and Sistema Shyam Telecom.
7. Market Structure
There are 22 telecom circles in India. The telecom circles are grouped under 4 major categories viz Metro, A, B and C.
a. Metro Circles
1. Mumbai
2. Delhi
3. Kolkota
b. A Circles
4. Andhra Pradesh
5. Gujarat
6. Karnataka
7. Maharashtra
8.Tamil Nadu
c. B Circles
9. Harayana
10. Punjab
11.Rajasthan
12. Uttar Pradesh (East)
13. Uttar Pradesh (West)
14. West Bengal
d. C Circles
15. Assam
16. Bihar
17. Himachal Pradesh
18. Jammu & Kashmir
19. North East
20. Orissa
21. Kerala
22. Madhya Pradesh
Chennai which was part of Metro circles was integrated with Tamil Nadu with effect from 31/3/2008
8. Conclusion
The Indian telecom market is the fastest growing but lowest tariff market in the world. The Government and the DoTshould design their policies not only to ensure that the country reaches 100% tele-density in the next 3 years but also ensure that it comes through a sustainable and profitable business model. The real challenge for the regulators is to combine healthy growth of the industry with low tariff, which takes into account the interests of both the consumers and the service providers.
About the Author
The author can be reached at vsmoni@hotmail.com. Visit indiatelecomonline.com for more articles.
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