Messaging Apps Face New User Verification Requirements Under Telecom Bill
The forthcoming telecommunications (telecom) Bill is poised to introduce regulatory measures for internet-based calling and messaging services like WhatsApp, Signal, Google Meet, and Telegram. Sources with inside information suggest that the bill will necessitate government authorisation and mandatory user verification on these platforms.
The final draft of the bill, now in its concluding phases, establishes distinct regulatory rules for various communication services. This contradicts earlier expectations that the final bill might offer significant leniencies for internet calling and messaging apps, commonly referred to as over-the-top (OTT) communication platforms.
Rather than licensing, the new approach involves authorisation for OTTs under the bill. This means that the government retains the exclusive right to grant authorisation to provide such services, though the specific terms and conditions for authorisation remain undisclosed.
In the previous year, the government proposed including internet-based communication services, in-flight and maritime connectivity services, interpersonal communication services, machine-to-machine communication services, and OTT communication services within the scope of telecom services in the draft bill, which was open for public consultation.
The term “OTT communication service” has now been substituted with “number-independent services” that are not connected to the public switched telephone network.
OTT communication platforms contend that the telecom bill is not the appropriate instrument for their regulation, as they are already subject to regulation under the Information Technology (IT) Act of 2000 and the IT Rules of 2021. Moreover, there are concerns about potential regulatory overlaps, especially with the proposed Digital India Bill, which intends to regulate OTTs as one of its categories.
The new telecom bill aims to replace three existing laws: the Indian Telegraph Act of 1885, the Indian Wireless Telegraphy Act of 1933, and the Telegraph Wires (Unlawful Possession) Act of 1950. While the bill initially seemed to be moving toward a less cumbersome regulatory framework with registration authorisation rather than licensing, it still emphasises the need for user verification.
The draft bill from the previous year also proposed that the government could instruct service providers to intercept, detain, and disclose messages sent through these platforms in emergencies or the interest of public safety. OTT platforms are concerned that this clause might compromise the security advantages of end-to-end encryption.
During the consultation process, the government emphasised its commitment to user protection in the telecom bill. Details regarding whether there will be a recurring fee based on a percentage of adjusted gross revenue will be disclosed following consultations by the Telecom Regulatory Authority of India.
