India’s telecom regulator, the Telecom Regulatory Authority of India (TRAI), has recognized the outdated terms set for Interconnection and directed an overhaul to the latest methods. The move is part of the ongoing rapid evolution of technology in India’s telecom industry and changing market dynamics that have rendered many existing rules obsolete.
Outdated Regulations Amidst Telecom Evolution
The regulator noted that the existing interconnection rules, some of which are more than a decade old, do not meet the present-day requirements of the telecom sector. The rules, written during another time of telecom technology and competition, are now technologically outdated — a product of such advancements as the dominance of 4G and 5G networks, data-focused services that didn’t exist on a broad scale when the net neutrality rules were first adopted and shifts in how people use mobile devices to communicate.
These regulations have not kept pace with modern telecom technologies, TRAI said in a recent consultation paper. “Too much for too long and dependent on the slave domestic industry: these are classic old policies, kept in place to protect construction of ‘monopoly-era controls’, which hurt private companies more than here-be-one State-run entities. This regulatory disparity is causing market distortions and is impairing the existence of fair competition and innovation in this sector.
Review and Reform of Nine Key Interconnection Regulations
As part of this activity, TRAI will review all nine existing interconnection regulations, ranging from its 2018 Telecommunication Interconnection Regulations to the SMS Termination Charges Regulations and other regulations dating back to the mid-2000s. The review will examine issues such as pricing, the exchange of traffic between operators, and access to physical infrastructure for commercial and technical links.
In its consultation paper, TRAI emphasized the importance of a forward-looking regulatory approach that facilitates easy connectivity for subscribers, promotes competition, and ensures that all operators, both public and private, adhere to the same rules.
Challenges Posed by Legacy Norms and PSU Operators
One of the major issues that TRAI has flagged is that some public sector players in the market are still non-responsive, as they operate under antiquated rules that are a legacy of a monopoly era. At times, these operators unilaterally dictate terms to private telecom companies that are not really operational and are financially arm-twisted. TRAI emphasized the need to remove such anomalies by imposing definitive timelines and ensuring product conformity with revised norms.
Strengthening Consumer Protection and Spam Control
In addition to the interconnection regime review, TRAI has further strengthened consumer norms in the telecom industry by making recent amendments to anti-spam regulations. The new rules are designed to increase accountability, with greater obligations on the part of telecom providers and telemarketers, as well as standardized message headers and a limited use of commercial messaging from non-commercial 10-digit numbers. These measures are designed to provide consumers with more control over the influx of unsolicited calls and messages, increase transparency, and curb spam and fraud on telecom networks.
Future Outlook
As India adopts next-generation mobile technologies and digital services, TRAI’s efforts to modernize the country’s telecom regulatory framework are crucial. Changing the rules for Interconnection to reflect current market conditions is expected to make the telecom ecosystem more competitive, improve service quality, and benefit customers.
The regulator’s consultation is open for feedback from stakeholders, indicating that they wish to collaborate in shaping the future of regulation in a manner that fosters growth and innovation in India’s telecom sector.