This book discusses the legal and regulatory aspects of communications services in India. The focus of this book is not confi ned to telephone or telecom services. It also includes radio and television through terrestrial, satellite, and cable technology as well as Internet services and Internet telephony. It is the fi rst legal treatise to attempt a comprehensive and systematic analysis of the legal framework for Indian communications. The book traces the origins of modern communications law to the East India Company’s foundation of a monopolistic telegraph network. It presents a chronological narrative of important regulatory developments since that time including a detailed assessment of economic reforms that began in 1992. It also offers a critical examination of the two independent regulatory institutions for the communications sector: the Telecom Regulatory Authority of India (’TRAI’) and the Telecom Disputes Settlement and Appellate Tribunal (‘TDSAT’). Written in a simple and accessible style, this book spans 23 chapters and explores over 100 different topics. It is indispensable reading and a reference guide for lawyers, judges, regulators, communications engineers, analysts, and business persons, consultants, researchers, academics, and students.
Acknowledgements ..................................................................................... ix
Preface ...................................................................................................... xi
Abbreviations .......................................................................................... xvii
Contents ................................................................................................... xxi
Table of Cases ......................................................................................... xliii
CHAPTER 1
AN OVERVIEW OF THE LEGAL AND REGULATORY
LANDSCAPE ................................................................. 1
1.1 BASIC STATUTORY FRAMEWORK—THE TELEGRAPH
ACT 1885 .......................................................................... 2
A. Government’s Exclusive Telegraph Privilege ............................ 3
B. Telegraph Authority and Telegraph Officer ............................. 4
C. Telegraph Rules and Other Regulations .................................. 5
D. Government’s Emergency and Regulatory Powers .................. 6
E. Statutory Offences and Penalties .............................................. 7
1.2 OTHER STATUTES THAT REGULATE COMMUNICATIONS ............... 7
A. Telecom Regulatory Authority of India Act 1997 .................. 7
B. Wireless Telegraphy Act 1933 ................................................. 8
C. Telegraph Wires (Unlawful Possession) Act 1950 ................... 8
D. Prasar Bharati Act 1990 .......................................................... 8
E. Cable Networks Act 1995 ....................................................... 8
F. Convergence Bill ...................................................................... 9
G. Broadcasting Bill ...................................................................... 9
H. Foreign Investment Restrictions .............................................. 9
1.3 KEY REGULATORY AND POLICY-MAKING AGENCIES................... 11
A. Telecom Regulatory Authority of India .................................12
B. Department of Telecommunications ......................................12
C. Telecom Commission and Prime Minister’s Office ...............13
D. Telecom Disputes Settlement and Appellate
Tribunal ...............................................................................14
E. Ministry of Information and Broadcasting ............................15
F. Prasar Bharati Corporation .....................................................16
CHAPTER 2
A PRIMER ON COMMUNICATIONS TECHNOLOGY ............... 17
2.1 BASIC CONCEPTS OF MODERN COMMUNICATIONS .................. 17
A. Radio Waves, Frequencies, and Spectrum..............................17
B. Analog and Digital Technologies ...........................................18
C. Circuit Switching and Packet Switching ................................19
2.2 TELEPHONE SYSTEMS ............................................................ 20
A. Fixed Networks .......................................................................20
B. Wireless in Local Loop ...........................................................21
C. Mobile or Cellular Networks .................................................21
2.3 COMPUTERS AND THE INTERNET............................................ 23
A. Integrated Circuits and Semiconductors ...............................23
B. What is the Internet? .............................................................23
C. Internet Telephony and VOIP ...............................................25
D. Wireless Internet Networks ....................................................25
2.4 OVERVIEW OF BROADCASTING AND CABLE TECHNOLOGY ......... 26
CHAPTER 3
HISTORICAL EVOLUTION OF COMMUNICATIONS LAW AND
POLICY ...................................................................... 29
3.1 INTRODUCTION ................................................................... 29
3.2 EARLY TELEGRAPH REGULATION IN ENGLAND .......................... 31
A. Rising Demand for Telegraph Services ...................................31
B. English Telegraph Acts of 1868 and 1869 ............................32
3.3 EVOLUTION AND EARLY REGULATION OF TELEGRAPHS IN
INDIA ............................................................................... 33
A. William O’Shaughnessy and the Company’s Telegraph
Network ..............................................................................33
B. Electric Telegraphs Act 1854 .................................................34
C. Telegraph Network and the 1857 Revolt ..............................37
D. Electric Telegraphs Act 1860 .................................................38
E. Indian Telegraph Act 1876 ....................................................39
3.4 THE INDIAN TELEGRAPH ACT 1885 ...................................... 40
A. Legislative History ..................................................................40
B. Statutory Definition of the term ‘Telegraph’ .........................42
C. Government’s Exclusive Telegraph Privilege ..........................43
D. Power to Place Telegraph Lines and Posts on Private and
Local Government Property ................................................43
E. Other Statutory Revisions ......................................................44
F. Administrative Aspects of Indian Telegraphs .........................44
3.5 GROWTH AND EARLY REGULATION OF THE TELEPHONE ............ 45
A. The Edison Telephone Case ......................................................45
B. Early Telephone Services in India ...........................................47
C. Wartime Nationalization of Indian Telephone Companies ...49
3.6 REGULATION OF WIRELESS AND BROADCASTING SERVICES ......... 49
A. Introduction of Wireless Communications ............................49
B. Broadcasting Services Before Independence ...........................50
C. Wireless Telegraphy Act .........................................................52
3.7 COMMUNICATIONS AFTER INDEPENDENCE AND DURING THE
NEHRUVIAN ERA ................................................................ 52
A. Telecom and Broadcast Infrastructure in 1947 .....................52
B. Introduction of Centralized Planning ....................................53
C. Telecom Sector during 1950s and 1960s ..............................54
D. Post-Independence Legal and Regulatory Framework ...........55
3.8 COMMUNICATIONS DURING INDIRA GANDHI’S REGIME ........... 58
A. Socialism and the Rise of the License Raj ..............................58
B. Expansion of Telecom Networks ............................................59
C. Amendments to the Telegraph Act ........................................60
D. Sarin Committee Report ........................................................61
E. Developments in Broadcasting ..............................................62
F. Advent and Spread of Television Services ...............................63
G. Lakhanpal’s Case ....................................................................64
3.9 STATE OF COMMUNICATIONS BETWEEN 1984 AND 1991 .......... 64
A. Telecom for Development ......................................................64
B. Reorganization of Telecom Institutional Structures ..............65
C. Promotion of Information Technology and Software .............67
D. Broadcast Reform Under the National Front Government ...67
E. Athreya Committee ................................................................69
CHAPTER 4
ECONOMIC REFORMS AND COMMUNICATIONS ................... 71
4.1 INTRODUCTION ................................................................... 71
4.2 FIRST GENERATION OF TELECOM AND BROADCASTING
REFORMS (1992–1999) ..................................................... 73
A. Overview of the New Economic Policies ................................73
B. First Steps in Telecom Reforms ..............................................74
C. National Telecom Policy of 1994 ...........................................75
D. Initial Basic Licenses and Additional Cellular Licenses .........77
E. Creation of TRAI ....................................................................78
F. Developments in Broadcasting and Cable .............................79
G. WTO Agreement on Telecom Services ...................................82
4.3 NEW TELECOM POLICY OF 1999 ........................................... 83
A. Background ............................................................................83
B. Overview and Objectives ........................................................84
C. Key Policy Objectives .............................................................85
D. New Classes of Service Providers ............................................86
E. Major Policy Changes .............................................................87
F. Clarifications on TRAI Role ...................................................87
G. Changes to Spectrum-Management Framework ....................88
H. Other Regulatory and Sectoral Issues ....................................89
I. Migration Package ..................................................................89
J. Evaluation of the 1999 Policy ................................................90
4.4 KEY DEVELOPMENTS AFTER 1999 TELECOM POLICY................. 91
A. Formation of BSNL and VSNL Privatization .........................91
B. Group on Telecom-and-Information-Technology
Convergence ........................................................................93
C. 2000 Amendments to TRAI Act ...........................................93
D. Convergence Bill ....................................................................94
E. Developments in Internet Services .........................................95
F. Deregulation of Long-Distance Services and Fourth
Cellular Licenses .................................................................96
G. Controversy over Limited-Mobility Services ..........................96
4.5 THIRD PHASE OF TELECOM REFORMS .................................... 97
A. Regulation of Broadcasting and Cable Services .....................97
B. Dramatic Spike in Tele-Density Rates ...................................99
C. Creation of the Universal Service Obligation Fund ...............99
D. Other Policy and Regulatory Developments ...................... 100
CHAPTER 5
CONSTITUTIONAL ASPECTS OF COMMUNICATIONS LAW ... 101
5.1 INTRODUCTION ..................................................................101
5.2 UNION CONTROL OVER COMMUNICATIONS ...........................102
A. Federal System of Governance ............................................. 102
B. Union’s Legislative and Executive Responsibility for
Communications .............................................................. 103
C. Historical Reasons for Union Control ................................. 104
D. Provincial Broadcasting Under the Government
Act 1935 .......................................................................... 106
E. Legislative History of Entry 31 ........................................... 109
F. Central Sales Tax on Communications ................................ 114
5.3 STATE AND LOCAL REGULATION OF COMMUNICATIONS ...........115
A. Preliminary Considerations ................................................. 115
B. Public Order and Law-Enforcement Functions ................. 116
C. Health and Safety Regulations ............................................ 118
D. State Sales Taxes ................................................................... 119
E. State Cinema and Entertainment Laws .............................. 124
F. State Entertainment and Luxury Taxes ............................... 125
G. State Regulation of Communications Equipment .............. 130
5.4 FUNDAMENTAL RIGHTS ........................................................132
A. Preliminary Considerations ................................................. 132
B. Equality and Equal Treatment ............................................ 132
C. Freedom of Speech and Expression ..................................... 133
D. Economic Activity and Business ......................................... 134
E. Life and Personal Liberty ..................................................... 135
F. Right to Privacy ................................................................... 136
G. Religious, Cultural, and Educational Rights ...................... 138
H. Enforcement of Fundamental Rights .................................. 138
5.5 FREE SPEECH AND COMMUNICATIONS ...................................140
A. Scope of Article 19(1)(a) and Early Cases .......................... 140
B. Right of Access to Government Media ............................... 141
C. Right to Communicate and Telecast ................................... 143
D. Is There a Right to Establish Broadcasting Stations? ......... 146
E. Commercial Speech ............................................................. 147
F. Restrictions on Free Speech................................................. 149
G. Must-Carry Provisions ......................................................... 150
5.6 THE CONSTITUTION AND THE STATE’S ROLE IN
COMMUNICATIONS ...........................................................152
A. Traditional Justifications for Government Control ............. 152
B. Formative Cases on Economic Matters ............................... 153
C. Socialism as a Constitutional Principle ............................... 153
D. Delhi Science Forum v Union of India .................................. 154
E. BALCO v Union of India ..................................................... 156
5.7 INTERPLAY OF ADMINISTRATIVE-LAW PRINCIPLES AND
REGULATORY DECISIONS ...................................................158
A. Preliminary Considerations ................................................. 158
B. Fairness in Government Decision-Making ......................... 159
C. Doctrine of Legitimate Expectation .................................... 162
D. Requirement of Natural Justice and Reasons for
Administrative Decisions ................................................. 163
E. Delegated Legislation and Telegraph Rules ........................ 164
CHAPTER 6
TELECOM REGULATORY AUTHORITY OF INDIA: JURISDICTION,
ROLE AND FUNCTIONS .............................................. 167
6.1 INTRODUCTION ..................................................................167
6.2 STATUTORY EVOLUTION OF TRAI AS AN INDEPENDENT
REGULATORY AGENCY........................................................169
A. Birth under the TRAI Ordinance ....................................... 169
B. Delhi Science Forum Case ..................................................... 170
C. TRAI as an Independent Regulatory Agency ..................... 171
D. Pre-2000 Statutory Position of TRAI ................................. 173
E. Early Turf Battles Between DoT and TRAI ........................ 174
F. Dispute over MTNL Cellular Licenses ............................... 175
G. Litigation Involving TRAI’s Interconnection Regulation ... 179
H. 2000 Amendment to the TRAI Act ................................... 182
6.3 TRAI’S LEGAL AND STATUTORY FOUNDATIONS .....................184
A. Legal Status and Statutory Purposes ................................... 184
B. Chairperson and Members .................................................. 185
C. Outline of Authority’s Powers and Functions .................... 187
D. Government Control over TRAI ......................................... 189
E. Relationship with TDSAT .................................................. 190
6.4 THE AUTHORITY’S REGULATORY FUNCTIONS .........................191
A. Statutory List of Regulatory Functions ............................... 191
B. Directions to Service Providers ............................................ 192
C. Power to Make Regulations ................................................. 194
D. Regulations in lieu of Directions ........................................ 195
E. Effect of 2000 Amendment on TRAI’s Ability to Fix
Interconnection Terms ..................................................... 198
F. Enforcement of TRAI Directions, Orders, and
Regulations ...................................................................... 199
6.5 RECOMMENDATORY, ADDITIONAL, AND TARIFF-SETTING
FUNCTIONS .....................................................................203
A. Statutory Power to Make Recommendations ...................... 203
B. Significance of TRAI Recommendations ............................ 204
C. Additional Functions Conferred on TRAI .......................... 206
D. Tariff-Setting Functions ...................................................... 206
6.6 SUBSTANTIVE AND PROCEDURAL ASPECTS OF TRAI
PROCEEDINGS ..................................................................207
A. Transaction of Business ....................................................... 207
B. Natural Justice in TRAI Proceedings .................................. 209
C. Delegation of Powers ........................................................... 209
D. Consultation Processes and Institutional Transparency ...... 210
E. Interaction with Consumer and NGO Groups .................. 212
F. Obtaining Information from Service Providers ................... 212
G. Disclosure of Information ................................................... 213
6.7 INSTITUTIONAL AND ADMINISTRATIVE MATTERS ....................218
A. Officers and Employees....................................................... 218
B. Institutional Arrangements ................................................. 219
C. Funding and Financial Management .................................. 219
D. Accounts and Annual Reports ............................................ 221
E. Staff Privileges and Immunities ........................................... 222
F. Central Government Rules under the TRAI Act ................ 223
CHAPTER 7
TELECOM DISPUTES SETTLEMENT AND APPELLATE
TRIBUNAL ................................................................ 225
7.1 INTRODUCTION ..................................................................225
7.2 TRIBUNAL’S LEGAL FOUNDATIONS AND INSTITUTIONAL
ASPECTS ..........................................................................226
A. Why a Separate Tribunal for Communications? ................. 226
B. TDSAT’s Legal Status under the TRAI Act ....................... 230
C. Appointment and Removal of Chairperson and
Members .......................................................................... 231
D. Constitution of Benches ...................................................... 231
E. Terms of Office and Benefits ............................................... 233
F. Tribunal’s Registry and Other Officers ............................... 233
7.3 JURISDICTIONAL BASES FOR TDSAT CASES .........................234
A. Statutory Basis for Original and Appellate Jurisdiction ..... 234
B. Ouster of Civil Court Jurisdiction ...................................... 235
C. Impact on Arbitration Agreements ..................................... 238
D. Standing Rules .................................................................... 243
7.4 SUBSTANTIVE ASPECTS OF ADJUDICATORY AND APPELLATE
POWERS ...........................................................................246
A. Appellate Powers of TDSAT................................................ 246
B. Power to Review TRAI’s Regulations .................................. 249
C. Disputes Outside TDSAT’s Mandate ................................ 251
7.5 PROCEDURE AND POWERS ....................................................252
A. General Considerations ....................................................... 252
B. Filing Deadlines and Limitation Rules ............................... 253
C. Pleadings and Initial Hearings ............................................ 256
D. Legal Representation ........................................................... 257
E. Conduct of Proceedings ...................................................... 258
F. Evidence and Document Production .................................. 260
G. Orders and Judgments ........................................................ 260
H. Enforcement of TDSAT Rulings ......................................... 261
7.6 APPEALS TO THE SUPREME COURT .......................................262
A. Appeal Involving a Substantial Question of Law ................ 262
B. Other Rules for Supreme Court Appeals ............................ 263
C. Effect of Supreme Court Appeal on TDSAT Proceedings .. 264
7.7 ASSESSMENT OF TDSAT’S ROLE AND RECORD ...................264
A. Initial Slow Start ................................................................. 264
B. Stricter Standards for TRAI Decisions ................................ 265
C. Opening the Floodgates to Cable and Broadcasting
Disputes ........................................................................... 266
D. Model for Specialized Dispute-Resolution ......................... 266
CHAPTER 8
LICENSES FOR COMMUNICATIONS SERVICES .................... 267
8.1 INTRODUCTION ..................................................................267
8.2 STATUTORY FRAMEWORK FOR LICENSES ...............................268
A. Government’s Exclusive Privilege under the
Telegraph Act ................................................................... 268
B. Statutory Basis for Telegraph Licenses ................................ 271
C. Distinction between Telegraph Licenses and Permits ......... 273
D. Wireless Licenses under the Wireless Telegraphy Act ......... 276
E. Specific Exemptions from Licensing ................................... 278
8.3 LEGAL AND POLICY CONSIDERATIONS IN ISSUING LICENSES .....280
A. Slow Evolution of Licensing Policy ..................................... 280
B. Legal Characteristics of a Telegraph License ....................... 282
C. Applicability of Telegraph Act and Telegraph Rules ........... 284
D. Binding Nature of TRAI Directions and Orders ................ 285
E. Types of Licenses ................................................................. 288
F. Licensing Methods .............................................................. 290
G. Eligibility Requirements for Telegraph Licenses ................. 292
8.4 SERVICE AREAS IN TELEGRAPH LICENSES.................................293
A. Preliminary Considerations ................................................. 293
B. Organization of Service Areas .............................................. 294
C. Franchising Options ............................................................ 296
D. SDCAs and Local Areas ....................................................... 297
E. Revisions to Service-Area Boundaries .................................. 299
8.5 LICENSE TERMS AND CONDITIONS .......................................300
A. Preliminary Considerations ................................................. 300
B. Net-Worth and Capitalization Requirements .................... 302
C. Foreign Investment Restrictions ......................................... 302
D. Multiple-Ownership Rules and Cross-Ownership Rules ... 305
E. Duration of Licenses ........................................................... 306
F. License Fees and Spectrum Charges .................................... 307
G. Bank Guarantee Requirements ........................................... 309
H. Rollout Obligations ............................................................ 311
I. Emerging Rule of Non-Discrimination in Service
Provision ........................................................................... 312
J. Other License Reporting and Compliance Obligations ..... 315
K. Amendments and Modifications ......................................... 315
8.6 TRANSFERS, ASSIGNMENTS AND SUB-CONTRACTING
ARRANGEMENTS................................................................316
A. Evolution of Transfer Provisions .......................................... 316
B. Sub-Contracting Maintenance Arrangements .................... 317
C. TRAI Recommendations on Mergers and Acquisition ....... 318
D. Merger and Acquisition Guidelines .................................... 319
8.7 REMEDIES AND DISPUTE-RESOLUTION ..................................322
A. Preliminary Considerations ................................................. 322
B. Damages as a Contractual Remedy ..................................... 322
C. Specific Performance ............................................................ 325
D. Statutory Remedies for License Violations ......................... 326
E. Dispute-Resolution ............................................................. 328
CHAPTER 9
UNIFIED ACCESS SERVICES ............................................ 329
9.1 INTRODUCTION ..................................................................329
9.2 INITIAL FRAMEWORK FOR UNIFIED LICENSES .........................331
A. TRAI Recommendations on Unified Licensing .................. 331
B. Phased Rollout of Unified Licensing Framework ................ 333
C. 2003 Guidelines for UAS Licenses ..................................... 333
9.3 ADDITIONAL TRAI RECOMMENDATIONS ON UNIFIED
LICENSING .......................................................................335
A. Choice of Licensing Models ................................................ 335
B. TRAI’s 2005 Recommendations on Unified Licensing ...... 336
C. Other Regulatory Developments ........................................ 338
D. TRAI Convergence Recommendations ............................... 339
9.4 2005 GUIDELINES FOR UAS LICENSES ..................................339
CHAPTER 10
CELLULAR AND MOBILE SERVICES .................................. 343
10.1 INTRODUCTION ................................................................343
10.2 FORMATIVE DEVELOPMENTS IN CELLULAR SERVICES ..............345
A. Initial Metro-Cellular Licenses ........................................... 345
B. Tata Cellular v Union of India ............................................. 346
C. 1994 Telecom Policy and Circle Cellular Licenses ............. 349
D. MTNL’s Cellular Services in Mumbai and Delhi ............... 351
10.3 CELLULAR CRISIS AND MIGRATION PACKAGE .......................352
A. Cellular Companies’ Financial Crisis .................................. 352
B. Group on Telecom Recommendations and 1999
Telecom Policy ................................................................. 354
C. Attorney General’s Opinion on License-Fee Arrears ........... 355
D. Migration Guidelines .......................................................... 358
E. Litigation Regarding the Migration Package ...................... 360
F. Full and Final Settlement of All Disputes .......................... 361
G. Effect of Notional Extension of License Period ................... 362
H. Entry Fee for Migration ...................................................... 364
10.4 SECOND PHASE OF CELLULAR DEVELOPMENT IN INDIA ..........366
A. 1999 Telecom Policy’s Framework for Cellular Services ..... 366
B. TRAI Recommendations on Additional Cellular
Licences ............................................................................ 367
C. Selection Guidelines for New Cellular Licenses ................. 368
D. Auctions for Fourth Cellular Licensees ............................... 370
E. Calling-Party-Pays Arrangement ......................................... 371
10.5 THIRD PHASE OF CELLULAR EXPANSION...............................376
A. Prepaid and SIM Cards ....................................................... 376
B. Revisions to Cellular Licences ............................................. 378
C. Integration of Certain Metro and State Circles .................. 378
10.6 QUALITY-OF-SERVICES STANDARDS ......................................380
A. 2000 Service Standards Regulation .................................... 380
B. 2005 Service Standards Regulation .................................... 381
C. Enforcement of Quality Standards ..................................... 383
10.7 OTHER LEGAL AND POLICY ISSUES ......................................383
A. SMS and Other Value-Added Services ................................ 383
B. Roaming Arrangements....................................................... 384
CHAPTER 11
FIXED AND LIMITED-MOBILITY SERVICES ....................... 387
11.1 INTRODUCTION ................................................................387
11.2 EARLY DEREGULATION OF FIXED SERVICES ............................388
A. Basic Services and the 1994 Telecom Policy ....................... 388
B. First Round of Basic Licenses .............................................. 389
C. Delhi Science Forum v Union of India .................................. 392
D. Key Aspects of Initial Fixed Licenses ................................... 394
E. Financial Problems of Fixed Networks ................................ 394
F. 1999 Telecom Policy and Fixed Services ............................. 396
11.3 UNRESTRICTED COMPETITION FOR FIXED SERVICES .............396
A. TRAI Recommendations on Additional Fixed Licenses ..... 396
B. 2001 Guidelines for Basic or Fixed Licenses ....................... 399
11.4 EMERGENCE OF LIMITED-MOBILITY SERVICES AND RELATED
LITIGATION ...................................................................400
A. Wireless-in-Local-Loop Technology .................................... 400
B. MTNL’s Limited-Mobility Services .................................... 401
C. Telecom Commission’s Decision and TRAI Recommendations
on Limited-Mobility Services .......................................... 404
D. Complaints of Cellular Licensees Against Limited-Mobility
Services ............................................................................. 406
E. Initial Round of Legal Proceedings before TDSAT ............ 408
F. First TDSAT Decision on Limited Mobility ...................... 410
G. Supreme Court Appeal and Remand .................................. 412
H. Second TDSAT Decision on Limited-Mobility ................. 414
11.5 SUBSEQUENT DEVELOPMENTS IN LIMITED MOBILITY ............421
A. TRAI Recommendations on Level Playing Field ................ 421
B. Litigation Regarding Interfaces ........................................... 422
C. Introduction of Unified Licensing ...................................... 423
D. Distinctions between Fixed and Limited-Mobility
Services ............................................................................. 425
11.6 OTHER LEGAL AND REGULATORY ISSUES ..............................427
A. TRAI Directions on Allotment of New Connections ......... 427
B. Tariffs for Fixed Services ....................................................... 429
C. Unbundling Requirements ................................................. 430
D. Quality-of-Service Standards ............................................... 433
E. Short Messaging Services ..................................................... 434
CHAPTER 12
VALUE-ADDED SERVICES AND OTHER SERVICE
PROVIDERS ............................................................... 435
12.1 INTRODUCTION ................................................................435
12.2 RADIO-PAGING SERVICES ....................................................436
A. Initial Paging Licenses ......................................................... 436
B. Eider Electronics Litigation ................................................ 437
C. 1999 Telecom Policy ........................................................... 437
D. TDSAT Proceedings ............................................................ 439
12.3 VOICE-MAIL, AUDIO-TEX, AND UNIFIED MESSAGING
SERVICES ........................................................................440
12.4 PUBLIC MOBILE RADIO TRUNK SERVICES (PMRTS) ................442
12.5 OTHER SERVICE PROVIDERS ................................................443
12.6 CLOSED-USER GROUPS AND VIRTUAL PRIVATE NETWORKS ....445
12.7 SATELLITE-BASED SERVICES .................................................445
A. Very Small Aperture Terminal (VSAT) Services .................. 445
B. Global Mobile Personal Communication Services
(GMPCS) ......................................................................... 447
C. INSAT MSS Reporting Services .......................................... 448
CHAPTER 13
LONG DISTANCE SERVICES ............................................ 449
13.1 INTRODUCTION ................................................................449
13.2 EVOLUTION OF INTERNATIONAL SERVICES IN INDIA ..............450
A. Early Links between India and England ............................. 450
B. Overseas Communications Service and VSNL .................... 451
C. Privatization of VSNL ......................................................... 452
D. WTO Commitments and Opening-Up of International
Services ............................................................................. 453
13.3 DEREGULATION OF NATIONAL LONG-DISTANCE SERVICES .....454
A. Early License Restrictions ................................................... 454
B. Prescriptions of 1999 Telecom Policy ................................. 455
C. Deregulation of NLD Services ............................................ 455
13.4 GUIDELINES FOR ILD AND NLD SERVICES .............................457
A. License Simplification Exercise ........................................... 457
B. Guidelines for ILD Licenses ................................................ 457
C. Guidelines for NLD Licenses .............................................. 459
13.5 OTHER LEGAL AND REGULATORY ISSUES ..............................460
A. Long-Distance Carrier Selection ......................................... 460
B. International Call Masquerading ........................................ 462
13.6 INFRASTRUCTURE AND BACKBONE FACILITIES ......................464
A. Preliminary Considerations ................................................. 464
B. Guidelines for IP-I and IP-II Providers ............................... 465
C. Infrastructure for International Communications .............. 467
D. International Infrastructure Providers ................................. 469
E. Tariffs for International and Domestic Leased Circuits ...... 469
CHAPTER 14
INTERNET SERVICES ...................................................... 471
14.1 INTRODUCTION ................................................................471
14.2 EVOLUTION OF POLICIES FOR INTERNET-SERVICES ................472
A. ERNET Project and E-Mail Licenses ................................. 472
B. Internet Policy 1998 ........................................................... 473
C. Internet Guidelines ............................................................. 475
D. 1999 Telecom Policy and Internet Services ......................... 475
E. TRAI Recommendations on Internet Growth ................... 475
14.3 REGULATION OF BASIC INTERNET SERVICES ..........................476
A. Internet Guidelines ............................................................. 476
B. International Gateways and Landing Stations .................... 477
C. ISP Exit Policy ..................................................................... 478
14.4 BROADBAND POLICY ..........................................................479
A. Overview and Objectives ..................................................... 479
B. Key Technological Options ................................................. 480
C. Spectrum Management ....................................................... 481
D. Other Issues ......................................................................... 482
E. TRAI Review of Broadband Targets .................................... 482
14.5 INTERNET-TELEPHONY AND VOIP REGULATION .....................484
A. Distinction between Internet Telephony and VOIP .......... 484
B. Early Prohibitions on Internet Telephony .......................... 484
C. TRAI Recommendations on Internet Telephony ............... 485
D. Internet Telephony Guidelines ........................................... 487
E. VOIP Technology in International Services ........................ 488
F. Future Regulatory Challenges ............................................ 489
14.6 INTERCONNECTION FACILITIES AND ACCESS TO
NETWORKS ....................................................................490
A. Preliminary Considerations ................................................. 490
B. Interconnection Arrangements ............................................ 490
C. Leased Lines ......................................................................... 491
D. Local Access Numbers ......................................................... 491
E. Direct Last-Mile Links ........................................................ 492
F. Charges for Leased Lines ..................................................... 493
14.7 OTHER LEGAL AND POLICY ISSUES ......................................493
A. Other Value-Added Services ............................................... 493
B. ISPs and Virtual Private Networks ...................................... 494
C. TRAI Regulation on Quality of Internet Services .............. 496
D. Recommendations on Migration from IPv4 to IPv6 and
Next Generation Networks .............................................. 497
CHAPTER 15
TERRESTRIAL AND SATELLITE BROADCASTING ................ 499
15.1 INTRODUCTION ................................................................499
15.2 THE CRICKET ASSOCIATION CASE AND SUBSEQUENT ...................
DEVELOPMENTS ..............................................................500
A. Overview and Key Facts ...................................................... 500
B. Constitutional Aspects ........................................................ 502
C. Government Monopoly Over Broadcast Frequencies ......... 504
D. Regulatory Framework for Broadcasting ............................. 506
E. Decisions in the Underlying Cases ..................................... 507
15.3 REGULATORY FRAMEWORK FOR TERRESTRIAL AND SATELLITE
BROADCASTING ..............................................................508
A. Legal Definition of Broadcasting ........................................ 508
B. Statutory Basis for Broadcasting Licenses ........................... 510
C. TRAI’s Role as Broadcast Regulator ................................... 510
15.4 TELEVISION SERVICES .........................................................512
A. Preliminary Considerations ................................................. 512
B. Uplinking Guidelines .......................................................... 512
C. Downlinking Guidelines ..................................................... 514
D. Public Broadcasting of Major Sporting Events ................... 517
E. Direct-to-Home Services ..................................................... 518
F. TRAI Recommendations on Private TV Broadcasting ....... 520
15.5 RADIO SERVICES ................................................................523
A. Preliminary Considerations ................................................. 523
B. First Round of FM-Radio Licenses ..................................... 523
C. Litigation Regarding FM Licenses ...................................... 525
D. Second Round of FM Licensing ......................................... 526
E. Satellite Radio ..................................................................... 529
F. Community Radio .............................................................. 530
G. Amateur Radio .................................................................... 531
CHAPTER 16
REGULATION OF CABLE TELEVISION...........................533
16.1 INTRODUCTION ................................................................533
16.2 DEVELOPMENT AND PRESENT STRUCTURE OF THE CABLE
INDUSTRY ......................................................................534
A. Early Video Networks ......................................................... 534
B. Shiv Cable v State of Rajasthan ............................................ 537
C. Subsequent Regulatory Developments ............................... 539
D. Present State of the Cable Market ...................................... 539
16.3 ESSENTIAL FEATURES OF THE REGULATORY FRAMEWORK ........540
A. Overview of the Cable Networks Act .................................. 540
B. Registration Requirements .................................................. 541
C. Content Restrictions and Operations of Cable Networks .. 543
D. Statutory Violations and Offences ...................................... 543
16.4 USE OF CONDITIONAL ACCESS SYSTEMS IN CABLE
NETWORKS ....................................................................544
A. Task Force Recommendations ............................................. 544
B. 2003 Amendment to the Cable-Networks Act .................. 545
C. CAS Notification and Subsequent Litigation ..................... 547
D. CAS Reference to TRAI....................................................... 549
E. Suspension and Reintroduction of the CAS
Framework ........................................................................ 550
16.5 PRELIMINARY APPRAISAL OF TRAI AND TDSAT’S ROLES IN
CABLE REGULATION ........................................................553
CHAPTER 17
CONTENT RESTRICTIONS IN COMMUNICATIONS .............. 557
17.1 INTRODUCTION ................................................................557
17.2 RESTRICTIONS BASED ON PUBLIC MORALITY AND
DECENCY .......................................................................558
A. Programme Code for Cable Television ................................ 558
B. Film Certification under the Cinematograph Act .............. 559
C. Obscenity Provisions in Criminal Statutes ......................... 563
D. Adult Telephone Services ..................................................... 563
E. Content Regulation on the Internet ................................... 564
F. Legal Quicksands of Decency and Morality ....................... 565
17.3 RESTRICTIONS ON NEWS AND ADVERTISEMENTS...................567
A. General Restrictions on News and Current Affairs
Programmes...................................................................... 567
B. Cable and Radio Advertisement Codes............................... 568
C. Broadcast of Political Advertisements .................................. 569
D. Other Restrictions on Advertisements ................................ 570
17.4 RESTRICTIONS BASED ON PUBLIC ORDER, STATE SECURITY, AND
CONTEMPT OF COURT ....................................................572
A. Cinematograph Act ............................................................. 572
B. Cable Networks Act ............................................................ 572
C. Penal Code and Other Laws ................................................ 573
CHAPTER 18
INTERCONNECTION ARRANGEMENTS .............................. 575
18.1 INTRODUCTION ................................................................575
18.2 EVOLUTION AND OVERVIEW OF THE REGULATORY
FRAMEWORK ..................................................................577
A. Early Disputes between Government Incumbents and
Private Licensees ............................................................... 577
B. MTNL v TRAI ..................................................................... 580
C. Determination on Interconnection Arrangements Between
Cellular Providers and BSNL ........................................... 583
D. Statutory Basis in TRAI Act ................................................ 584
18.3 INTERCONNECTION IN TELECOM SERVICES ..........................586
A. Telecom Interconnection Regulation .................................. 586
B. Model RIO.......................................................................... 588
C. Interconnection Agreements ............................................... 591
D. Fixed-to-Fixed Interconnection Disputes ............................ 592
E. TRAI Directions on Interconnection.................................. 594
F. Quality of Service ................................................................ 598
G. Minimum-Traffic Provision ................................................. 598
H. Register of Telecom Interconnection Agreements ............... 599
18.4 INTERCONNECTION IN BROADCASTING AND CABLE
SERVICES ........................................................................600
A. Broadcast and Cable Interconnection Regulation .............. 600
B. Non-Discrimination and Distribution of Signals .............. 601
C. Broadcasting and Cable Interconnection Agreements ........ 603
D. Disconnection Procedures ................................................... 604
E. Enforcement of the Regulation ........................................... 605
F. Broadcast-and-Cable Interconnection Register .................. 606
CHAPTER 19
COMMUNICATIONS TARIFFS AND RATES .......................... 609
19.1 INTRODUCTION ................................................................609
19.2 BASIC FRAMEWORK FOR TARIFF REGULATION .......................610
A. Tariff Regulation before TRAI’s Creation ........................... 610
B. Present Statutory Basis for Tariff Regulation ...................... 611
19.3 TRAI’S TELECOM TARIFF ORDER ......................................612
A. Consultation Exercise Preceding the Tariff Order .............. 612
B. Key Elements of Tariff Order .............................................. 614
C. Types of Regulated Tariffs ................................................... 616
D. Prohibition Against Discrimination ................................... 618
E. Standard and Alternative Packages ...................................... 620
F. Publication of Tariffs and Other Service Terms ................... 622
G. Reporting Requirements ..................................................... 623
H. Forbearance .......................................................................... 625
I. TRAI’s Power to Review Tariffs ........................................... 626
19.4 TELECOM INTERCONNECTION CHARGES ..............................627
A. Preliminary Considerations ................................................. 627
B. TRAI Judgment on Interconnection Charges ..................... 628
C. 1999 Telecom Interconnection-Charges Regulation .......... 629
D. 2001 Telecom Interconnection-Charges Regulation .......... 631
E. Litigation Involving Access Charges and Port Charges ....... 632
F. Dispute Involving BSNL Interconnection Charges ............ 635
G. Charges for ISP Interconnections ........................................ 637
19.5 INTERCONNECTION USAGE CHARGES ..................................637
A. Preliminary Considerations ................................................. 637
B. The First Telecom IUC Regulation ..................................... 638
C. The Telecom IUC Regulation ............................................. 639
D. ADC Collection and Disbursement Mechanics ................. 640
E. Subsequent Modifications to the ADC-Payment System ... 641
F. ADC Payments and International Calls .............................. 644
G. Other IUC Payments .......................................................... 645
19.6 TARIFFS FOR BROADCASTING AND CABLE SERVICES ..............646
A. Evolution of Broadcast-and-Cable Tariff Regulation .......... 646
B. Scope of Second Broadcast-and-Cable Tariff Order ............ 648
C. Regulated Charges and Channels ....................................... 648
D. Applicable Ceilings and Annual Adjustments .................... 650
E. Differential Rates ................................................................ 652
F. Reporting Obligations ........................................................ 654
19.7 ENFORCEMENT AND REVIEW OF TRAI TARIFF ORDERS ........654
A. Statutory Framework under the TRAI Act ......................... 654
B. Judicial Review of Tariff Fixation ......................................... 657
CHAPTER 20
SPECTRUM, NUMBERS, AND MAINTENANCE OF
COMMUNICATIONS EQUIPMENT AND
INFRASTRUCTURE ..................................................... 663
20.1 INTRODUCTION ................................................................663
20.2 REGULATORY FRAMEWORK FOR SPECTRUM MANAGEMENT ......665
A. Preliminary Considerations ................................................. 665
B. Legal Provisions ................................................................... 666
C. The WPC Wing .................................................................. 667
D. SAFCA Clearances ............................................................... 668
20.3 EMERGING ISSUES IN SPECTRUM MANAGEMENT ....................668
A. Reform of the Prevailing Regulatory Framework ................ 668
B. Streamlining SAFCA Clearances ......................................... 672
C. De-licensing Spectrum Bands for Broadband Services ....... 672
D. Introduction of Spectrum Trading ...................................... 674
20.4 REGULATION OF NUMBERS ..................................................675
A. Preliminary Considerations ................................................. 675
B. National Numbering Plan .................................................. 675
C. Rule 418 of the Telegraph Rules ........................................ 677
D. Number Portability ............................................................. 677
20.5 LEGAL FRAMEWORK FOR INSTALLING AND MAINTAINING
COMMUNICATIONS INFRASTRUCTURE ...............................678
A. Legislative History for Part III of the Telegraph Act ........... 678
B. Telegraph Authority’s Power to Place and Maintain
Telegraph Lines and Posts ................................................ 679
C. Intervention by District Magistrate in Cases of
Obstruction ...................................................................... 681
D. Compensation for Use of Private Property .......................... 683
E. Disputes Regarding Compensation .................................... 684
F. Dealings with Local Authorities and the Railways ............. 686
G. Repair or Removal of Telecom Equipment ......................... 687
H. Damage and Interference; Cutting Trees ............................ 689
20.6 SPECIAL CONSIDERATIONS APPLICABLE TO
PRIVATE LICENSEES ...........................................................690
A. Delegation of Powers under Part III of the Telegraph Act... 690
B. Other Legal Considerations ................................................ 692
C. Rights of Way Clearances and Approvals ............................ 693
CHAPTER 21
UNIVERSAL SERVICE FRAMEWORK................................... 695
21.1 INTRODUCTION ................................................................695
21.2 STATUTORY FRAMEWORK FOR UNIVERSAL SERVICE
OBLIGATIONS .................................................................697
A. Emergence of the Universal Service Framework .................. 697
B. 2004 Amendment to the Telegraph Act ............................. 699
C. 2006 Amendment to the Telegraph Act ............................. 700
D. TRAI’s Role in the Universal Services Framework .............. 701
21.3 OPERATIONAL MODALITIES OF THE UNIVERSAL SERVICE
FUND ............................................................................703
A. USO Administrator ............................................................. 703
B. Use of USO Funds .............................................................. 703
21.4 PUBLIC CALL OFFICES ........................................................705
A. Legal Status of PCO-Booth Operators and Franchise
Agreements ....................................................................... 705
B. Operating Commissions and Charges ................................ 707
C. Franchise Allotments and Transfer ...................................... 708
CHAPTER 22
CONSUMER PROTECTION AND COMPETITION POLICY ...... 711
22.1 INTRODUCTION ................................................................711
22.2 ARBITRATION UNDER SECTION 7B OF THE TELEGRAPH
ACT ..............................................................................712
A. Textual Aspects and Legislative Intent ................................ 712
B. Scope of Section 7B ............................................................. 715
C. Ouster of Civil-Court Jurisdiction ...................................... 716
D. Appointment of Arbitrators ................................................ 717
E. Interim Relief Pending Arbitration ..................................... 720
F. Procedural Aspects of Arbitration ....................................... 720
G. Duration of Arbitral Proceedings ........................................ 722
H. Nature of the Award ............................................................ 723
I. Challenges to Section 7B Awards ........................................ 724
22.3 CONSUMER FORUMS AND LOK ADALATS ...............................725
A. Overview of Consumer Protection Act ................................ 725
B. Statutory Arbitration versus Consumer Protection ............. 728
C. Telephone Adalats and Permanent Lok Adalats ................... 730
D. In-House Consumer Grievance Mechanisms...................... 731
22.4 PRINCIPAL CATEGORIES OF CONSUMER DISPUTES..................731
A. Preliminary Considerations ................................................. 731
B. New Telephone Connections .............................................. 734
C. Classification of Applicants ................................................. 734
D. Denial of New Connections under Rule 416 ..................... 737
E. Excess Billing and Metering Disputes ................................ 738
F. Disconnection under Rule 443 of the Telegraph Rules ..... 739
G. Default by Close Relatives and Corporations ..................... 741
H. Other Grounds for Disconnection ...................................... 743
I. Transfer and Shifting of Telephones .................................... 745
22.5 TRAI CONSUMER PROTECTION DIRECTIONS AND
REGULATIONS .................................................................746
A. Statutory Role for TRAI in Consumer Matters .................. 746
B. Directions on Tariffs ............................................................ 747
C. Quality-of-Service Standards ............................................... 748
D. Common Charter Of Telecom Services 2005 ..................... 749
22.6 COMPETITION LAW AND COMMUNICATIONS ........................750
A. Growing Importance of Competition Law ......................... 750
B. Existing Statutory and Legal Framework ............................ 751
CHAPTER 23
COMMUNICATIONS PRIVACY, ELECTRONIC SURVEILLANCE,
AND SEIZURE OF NETWORKS ..................................... 755
23.1 INTRODUCTION ................................................................755
23.2 PRIVACY OF COMMUNICATIONS ...........................................757
A. Statutory Provisions ............................................................. 757
B. Obligations of Private Service Providers .............................. 757
23.3 SURVEILLANCE AND INTERCEPTION OF COMMUNICATIONS .....758
A. Statutory Basis for Surveillance ........................................... 758
B. PUCL v Union of India ....................................................... 759
C. Rule 419-A of the Telegraph Rules ..................................... 762
D. Communications Surveillance by Private Licensees ............ 764
E. Unlawful Interceptions under the Telegraph Act ................ 766
23.4 GOVERNMENT’S POWER TO SEIZE OR TAKE OVER
COMMUNICATIONS .........................................................767
A. Statutory Basis for Seizure of Telegraph Facilities ................ 767
B. License Provisions ................................................................ 771
23.5 TELEPHONE DIRECTORIES AND DIRECTORY INQUIRY
SERVICES .......................................................................771
A. Provisions in Telegraph Rules .............................................. 771
B. Tata Press v MTNL .............................................................. 772
C. TRAI Recommendations on Telephone Directories ........... 773
Glossary of Technical Terms .................................................................... 777
Index ..................................................................................................... 783
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