India Overhauls Telecom Laws to Welcome Starlink, Amid Privacy Concerns

India's parliament has approved a landmark telecommunications bill, ushering in a new era for the country's connectivity landscape. With over 1.17 billion telephone connections and 881 million internet subscribers, the move aims to modernize connectivity and facilitate emerging services like satellite broadband, particularly with companies such as OneWeb, Starlink, and Amazon's Kuiper eyeing the vast Indian market. This legislative development comes just months before general elections.

The upper house of the Indian parliament passed the Telecommunications Bill, 2023 through voice votes, a day after it received approval in the lower house, despite the absence of many opposition leaders due to their suspension. This bill replaces century-old rules, dating back to the telegraph era of 1885, empowering the Prime Minister Narendra Modi-led government to control telecom services, monitor traffic data for national security, and intercept communications.

Notably, the bill streamlines spectrum allocation for satellite-based services without auctions, a move that favors companies like OneWeb, Starlink, and Amazon’s Kuiper. India’s Jio, seeking to compete in the satellite broadband space, had earlier opposed administratively allocating spectrum but now stands to benefit from this shift.

Beyond connectivity, the bill introduces measures like biometric verification for subscribers, limits on SIM card usage to curb fraud, and provisions for civil penalties, with fines ranging up to $12,000 for specific infringements and up to $600,400 for breaching defined terms and conditions.

In a bid to attract foreign investors and enhance private participation, amendments to the Telecom Regulatory Authority of India Act, 1997 have been included, allowing executives with over 30 years of private sector experience to serve as regulator chairpersons.

Telecom Minister Ashwini Vaishnaw highlighted the bill's significance, stating, "It is very comprehensive, and very big structural reforms have come from the vision of Prime Minister Shri Narendra Modi ji. The legacy of the old scammers in the telecom sector will be left behind, and arrangements will be made through this bill to make the telecom sector a sunrise sector."

Interestingly, the bill excludes the term "OTT" (Over-the-Top) from its initial draft, which would have covered regulations for messaging apps like WhatsApp and Signal. Digital rights activists and privacy advocacy groups express concerns over the bill's ambiguity and lack of public consultations in its final version.

The bill now awaits approval from the Indian President to become an official act.