On 1st May, the Department of Telecommunications unveiled the Draft National Digital Communications Policy, 2018 (Policy) and it has been thrown open to public for comments and recommendations. The Policy lays down three missions for itself, namely – “Connect India, Propel India and Secure India.” This blogpost provides ten key takeaways for the startup sector from the Policy.
- Research and Development: The Policy seeks to create a fund for research and development for startups and entrepreneurs to enable innovation in cutting edge communications, 5G, software, content, security and related technologies and applications; and commercialization of products and services through grants, scholarships, venture capital, etc.[i]
- Intellectual Property Rights: The Policy intends to foster an Intellectual Property Rights regime and assist startups in filing copyright, patent and trademarks applications.[ii]
- Fiscal and Non-Fiscal: The Policy seeks to provide fiscal and non-fiscal benefits including academic collaborations, permissions for pilots and testing, concessions on imported software, mentoring support etc[iii] and to promote participation of startups in government procurement.[iv]
- Entry Barriers: The Policy also seeks to reduce entry barriers for startups by reducing the initial cost and compliance burden (especially for new and innovative segments and services).[v]
- Promoting Innovation: The Policy seeks to prescribe a simple and enabling regulatory framework for application service providers in order to promote innovation in Application Services for Digital Communications.[vi]
- License and Regulatory Regime: The Policy seeks to reform the licensing and regulatory regime to catalyse investments and innovation, and promote Ease of Doing Business by reviewing levies and fees including License Fee; rationalising Spectrum Usage Charges (SUCs); rationalising taxes and levies on Digital Communications equipment, infrastructure and services; enabling unbundling of different layers through differential licensing; introducing various fiscal and non-fiscal benefits for development of telecom clusters around cable landing stations to foster innovation in Digital Communications Technologies.[vii]
- Simplifying compliance obligations: The Policy seeks to simplify compliance obligations by simplifying all existing technical systems and online systems applicable for grant of licenses, approvals, clearances, permissions and developing a comprehensive end-to-end online platform; specifying timelines within which various types of licenses, permissions and clearances need to be provided; improving the terms and conditions for ‘Other Service Providers’; reforming the guidelines for Mergers & Acquisitions, 2014 to enable simplification and fast tracking of approvals; establishing exit norms for licensees and simplifying Equipment Type Approval (ETA) process for low powered (< 1 watt) radio devices.[viii]
- Data Protection: The Policy seeks to harmonise communications law and policy with the evolving legal framework and jurisprudence relating to privacy and data protection in India.[ix] This includes amending various licenses and terms and conditions to incorporate provisions with respect to privacy and data protection.[x] It also seeks to ensure that core data protection and security principles are applied and enforced.[xi] Further, it seeks to promote the usage of indigenous communication products and services.[xii]
- Net Neutrality: The Policy also seeks to amend license agreements to incorporate the principles of non-discriminatory treatment of content, along with appropriate exclusions and exceptions as necessary.[xiii] In addition to this, it seeks to to ensure compliance with net neutrality principles, by introducing appropriate disclosure and transparency requirements.[xiv]
- Participation of Private Players: The Policy seeks to encourage participation of private players in the satellite communications sector.[xv] Furthermore, the Policy seeks to implement broadband initiatives like BharatNet, GramNet, NagarNet and JanWiFi through public-private partnerships[xvi] and to promote collaboration models involving state, local bodies and private sector as necessary for provision of shared duct infrastructure in municipalities, rural areas and national highways.[xvii]
[This post has been authored by Vartika Tiwari, a second year undergraduate student of National Law Institute University, Bhopal, during her internship with TRA. Pushan Dwivedi (Associate, TRA) gave inputs].
[i] Clause 2.3(b), Draft National Digital Communications Policy, 2018.
[ii] Clause 2.3(d), Draft National Digital Communications Policy, 2018.
[iii] Clause 2.4(a)(i), Draft National Digital Communications Policy, 2018.
[iv] Clause 2.4.(a)(ii), Draft National Digital Communications Policy, 2018.
[v] Clause 2.4(b), Draft National Digital Communications Policy, 2018.
[vi] Clause 2.4(c), Draft National Digital Communications Policy, 2018.
[vii] Clause 2.1(b), Draft National Digital Communications Policy, 2018.
[viii] Clause 2.1(c), Draft National Digital Communications Policy, 2018.
[ix] Clause 3.1(a), Draft National Digital Communications Policy, 2018.
[x] Ibid.
[xi] Clause 3.1(b), Draft National Digital Communications Policy, 2018.
[xii] Ibid.
[xiii] Clause 3.2(a)(i), Draft National Digital Communications Policy, 2018.
[xiv] Clause 3.2(a)(ii), Draft National Digital Communications Policy, 2018.
[xv] Clause 1.3(c)(iii), Draft National Digital Communications Policy, 2018.
[xvi] Clause 1.1(a), Draft National Digital Communications Policy, 2018.
[xvii] Clause 1.1(b)(ii), Draft National Digital Communications Policy, 2018.
