AUTHORIZATION AND ASSIGNMENT UNDER TELECOMMUNICATIONS ACT, 2023

[Mr. M. GOVINDARAJAN]

Authorization

Section 2(1)(d) of the Telecommunications Act, 2023 (‘Act’ for short) defines the term ‘Authorization’ as a permission by whatever name called, granted under the Act for-

• providing telecommunication services;
• establishing, operating, maintaining or expanding telecommunication networks; or
• possessing radio equipments.

Assignment

Section 2(1)(b) of the Act defines the term ‘assignment’ as the permission for a radio station to use a radio frequency channel under specified conditions.

Authorization and assignment

Chapter II of the Act provides the procedure for authorization and assignment by the Central Government.

Authorization

Any person intending to-

• provide telecommunication services;
• establish, operate, maintain or expand telecommunication network; or
• possess radio equipment

obtain an authorization from the Central Government.  The authorization is subject to terms and conditions including payment of fees as may be prescribed.

The Central Government is given power to frame rules in regard to authorization.  The Central Government, while making rules, may provide for different terms and conditions for different types of telecommunication services, telecommunication network or radio equipment.

Any authorized entity, providing telecommunication services shall be notified by the Central Government.  The Authorized entity shall identify the person to whom it provides telecommunication services through use of any variable biometric based identification.  The Central Government may allot to the authorized entity, telecommunication identifiers subject to terms and conditions and payment of prescribed fees.  The Central Government may also allow the use of telecommunication identifiers allotted by international bodies which are recognized by the Central Government from time to time.

Any authorized entity may undertake any merger, demerger or acquisition, or other forms of restructuring, subject to any law for the time being in force and any authorized entity that emerges pursuant to such process, shall comply with the terms and conditions, including fees and charges, applicable to the original authorized entity, and such other terms and conditions, as may be prescribed.

Exemption

The Central Government may exempt from the requirement of authorization under this Act if it determines that it is necessary in the public interest, so to do, in such manner as may be prescribed.  Any exemption granted under erstwhile Act shall continue under this Act unless otherwise notified by the Central Government. 

Transition

A licence, registration, permission, by whatever name called, granted prior to the appointed day under the erstwhile Acts  in respect of provision of telecommunication services or telecommunication network-

• where a definite validity period is given, shall be entitled to continue to operate under the terms and conditions and for the duration as specified under such licence or registration or permission, or to migrate to such terms and conditions of the relevant authorization, as may be prescribed; or
• where a definite validity period is not given, shall be entitled to continue to operate on the terms and conditions of such licence or registration or permission for a period of five years from the appointed day, or to migrate to such terms and conditions of the relevant authorization, as may be prescribed.

Assignment of spectrum

The term ‘spectrum’ is defined under Section 2(1)(o) of the Act as the range of frequency of Hertzian or radio waves.  The Central Government is the full owner of the spectrum.   The Central Government shall assign the spectrum according to the provisions of the Act.    Any person who wants to use the spectrum shall get the assignment from the Central Government.  The Central Government may prescribe the terms and conditions for assignment of spectrum including the frequency range, methodology for pricing, price, fees and charges, payment mechanism, duration and the procedure.

The spectrum may be assigned in two ways - by administrative process and by auction.

Administrative process

‘Administrative Process’ means assignment of spectrum without auction.  The spectrum may be assigned by administrative process for the following, as per Schedule I-

• National Security and defence.
• Law enforcement and crime prevention.
• Public broadcasting services.
• Disaster management, safeguarding life and property.
• Safety and operation of roads, railways, metro, regional rail, inland water ways, airports, ports, pipelines, shipping and other transport systems.
• Conservation of natural resources and wildlife.
• Meteorological department and weather forecasting.
• Internationally dedicated bands for amateur stations, navigations, telemetry and other like usages.
• Use by Central Government, State Governments, or their entities or authorized entities for safety and operations of mines,  ports, oil exploration and such other activities where the use of spectrum is primarily for supporting the safety and operations.
• Public Mobile Radio Trunking services.
• Radio backhaul for telecommunication services.
• Community Radio Stations.
• In-flight and maritime connectivity.
• Space research and application, launch vehicle operations and ground station for satellite control.
• Certain satellite-based services such as teleports, television channels, Direct to Home, Headend In the Sky, Digital Satellite News Gathering, Very Small Aperture Terminal, Global Mobile Personal Communication by Satellites, National Long Distance, International Long Distance, Mobile Satellite Service in Land S bands.
• Use by Central Government, State Governments or other authorized agencies for telecommunication services.
• Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telecom Niagm Limited (MTNL).
• Testing, trial, experimental, demonstration purposes for enabling implementation of new technologies including one or more regulatory Sandboxes.

Amendment to Schedule I

The Central Government is given power to amend Schedule I for assignment of spectrum in order to serve public interest or perform government function or where auction of spectrum is not preferred mode of assignment due to technical or economic reasons.

Exemption

The Central Government may exempt in the public interest from the requirement of assignment and specific usages within specified frequencies and parameters from the requirements by means of notification.

Any exemption given in the erstwhile Acts, the same shall be continued unless otherwise notified by the Central Government. 

Continuation of assignment

Any spectrum assigned through the administrative process, prior to the appointed day, shall continue to be valid on the terms and conditions on which it had been assigned, for a period of 5 years from the appointed day, or the date of expiry of such assignment whichever is earlier.  Any spectrum assigned through auction prior to the appointed day shall continue to be valid on the terms and conditions on which it had been assigned.

Re-farming and harmonization

The Central Government may re-farm or harmonize any frequency range assigned to enable more efficient use of spectrum, subject to such terms and conditions as may prescribed. 

Neutral use of spectrum

The Central Government may enable the utilization of the spectrum in a flexible, liberalized and technologically neutral manner, subject to such terms and conditions, including applicable fees and charges, as may be prescribed.

Optimal utilization of spectrum

The Central Government, for optimal use of spectrum, may assign a part of spectrum that has already been assigned to one or more additional entities.  The original allottee of spectrum is known as Primary assignee and the part allocation of spectrum is called as the ‘Secondary assignee’.  The secondary assignee does not cause harmful interference in the use of relevant part of the spectrum by the primary assignee, subject to terms and conditions as may be prescribed. 

If any assigned spectrum has remained unutilized for insufficient reasons for such period as may be prescribed the Central Government may, after giving a reasonable opportunity of being heard to the assignee, terminate the assignment or part of such assignment or prescriber such terms and conditions relating to spectrum utilization.

Enforcement Mechanism

The Central Government may establish by notification, such monitoring and enforcement mechanism as it may deem fit to ensure adherence to terms and conditions of spectrum utilization and enable interference-free use of the assigned spectrum.  The Central Government may permit the sharing, trading, leasing and surrender of assigned spectrum, subject to the terms and conditions, including applicable fees or charges, as may be prescribed.

Refund of fee

No person shall be entitled to the refund of any fees or charges paid in respect of or under an authorization or assignment granted under this Act, if such authorization or assignment is suspended, curtailed, revoked or varied.