Telecom regulations and data protection

Why in news?

Reliance Jio has announced a plan that could disrupt the telecom landscape by challenging existing price points.

What is the status of Indian telecom?

• A billion connections issued so far.
• 350 million subscribers estimated to have smartphones.
• India had surpassed the US to become the second largest smartphone market in the world.
• Airtel is the leading Private sector telecom provider, RJio will overtake it soon.
• Telecom Regulatory Authority of India is the regulator of telecommunications in India. 

What are current issues of Indian telecom sector?

• India’s Internet adoption rate remains the lowest in the Asia-Pacific region with 422 million subscribers.
• A large chunk of them access the Net through smartphones.
• 500-550 million Indians use feature phones that offer no data services.
• Though smartphone and data costs are declining in India, they are still too high for most.
• There is need for the government to rationalise the multiple statutory levies on telecom service providers, which have been flagged as major stress points for the sector.

What are the issues with new RJio Plan?

• RJio within 10 months of operation, has 125 million customers.
• By its new plan, for a refundable security deposit of Rs. 1,500 and a tenth of that as monthly charges, it plans to give away free feature phones that will support 4G services.
• This phones can be returned after three years.
• Jio’s proposition of connecting the phone to the television has affected the stock prices of direct-to-home service providers.
• RJio moves are felt to be against competitive pricing and the plan is discriminatory in bridging digital divide
• Many users have a doubt about that data security, since recently Jio’s server has been hacked.
• Many providers feel that such plans would make them bankrupt and increase their NPA.

What measures can be taken to address the issues?

• Cheaper phones as well as data are essential to bring online the next 100-200 million people.
• Government should encourage cheap providers and ensure that such plans are reaching the user with net neutrality.
• Other telecom providers also need to introduce such plans for healthier competition and Quality of service.
• The government should make sure the data of the users are safe.
• The merits of China’s cyber security law that requires tech firms to store all relevant data of local users within its sovereign borders.
• A strong new law should protect users’ data and govern uneven agreement clauses set by service providers.

Source: The Hindu