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Assigning spectrum via auction or via administrative process is Centre's call, says new Bill

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Synopsis

As per the draft Bill, spectrum can be assigned through an auction or administrative process, depending on the requirements. It has proposed provisions to waive fees, charges and penalties of a company if it is required to protect the interest of consumers or ensure fair competition.

The Department of Telecommunications (DoT) on Wednesday released the much-awaited draft Indian Telecommunications Bill, 2022, which once formalised into an Act of Parliament will govern the sector.

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As per the draft Bill, spectrum can be assigned through an auction or administrative process, depending on the requirements. It has proposed provisions to waive fees, charges and penalties of a company if it is required to protect the interest of consumers or ensure fair competition.

The draft has also enlarged the definition of telecommunication services, bringing over-the-top (OTT) services such as WhatsApp, Signal and Telegram, satellite-based communication services, Internet and broadband services, in-flight and maritime connectivity services, etc., under the ambit of the proposed law. The draft document states that in case of insolvency, spectrum assigned to an entity shall revert to government control.


The draft Bill has been put up for public consultation and stakeholders can send their comment till October 20.

As per the draft, "the central government may assign spectrum for telecommunication through auction, administrative process for governmental functions or purposes in view of public interest or necessity".

In case of a default in payment by a licensee, and it has been determined that there were extraordinary circumstances, including financial stress, consumer interest, maintaining competition in the sector, reliability issues or a need to ensure continued supply of telecommunication services, the government can change the payment timeframe for such amounts, or decide about conversion of part or all the amounts payable into shares, write-off of such amounts, or provide relief from the payment.
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The government has the right to waive, in part or full, any fee, including entry fee, license fee or registrations fees; interest; additional charges or penalty or damages payable by a licensee.

It can also grant exceptions from the provisions of the proposed Act or rules to a licensee.
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ET in its edition dated September 20 reported elements of the draft Bill around waiver of fees and penalties. On September 12, it reported about OTT communications likely coming under the ambit of telecom.
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