The Communication Convergence Bill, 2001

ARRANGEMENT OF CLAUSES

AS INTRODUCED IN LOK SABHA

Bill No. 89 of 2001

THE COMMUNICATION CONVERGENCE BILL, 2001

A

BILL

to promote, facilitate and develop in an orderly manner the carriage and content of communications (including broadcasting, telecommutonication, and multimedia), for the establishment of an autonomous Commission to regulate all forms of communications, and for establishment of an Appellate Tribunal and to provide for matters connected therewith or incidental thereto.

WHEREAS IT IS CONSIDERED NECESSARY -

(i) to facilitate development of national infrastructure for an information based society, and to enable access thereto;

(ii) to provide a choice of services to the people with a view to promoting plurality of news, views and information;

(iii) to establish a regulatory framework for carriage and content of communication in the scenario of convergence of telecommunications, broadcasting, data-communication, multimedia and other related technologies and services; and

(iv) to provide for the powers, procedures and functions of a single regulatory and licensing authority and of the Appellate Tribunal.


Be it enacted by Parliament in the fifty-second Year of the Republic of India as follows:-

CHAPTER I

PRELIMINARY

Short title, extent and commencement
1.
(1) This Act may be called the Communication Convergence Act, 2001.

(2) It extends to the whole of India.

(3) It shall come into force on such date as the Central Government may, by notification, appoint and different dates may be appointed for different provisions of this Act and any reference in any such provision of this Act to the commencement of this Act shall be construed as a reference to the commencement of that provision.

Definitions.

2.
In this Act, unless the context otherwise requires,--
(1) "Adjudicating Officer " means an officer of the Commission appointed as Adjudicating Officer under sub section (I) of section 39;

(2) "Appellate Tribunal" means the Communication Appellate Tribunal established under sub section (I) of section 43;

(3) "Broadcasting service" means a content application service for providing television programme or radio programme, to persons having equipment appropriate for receiving that service regardless of the means of delivery of that service, but does not include -
(a) a service (including a teletext service) that provides only data, or text (with or without associated still images); or
(b) a service that makes programmes available on demand on a point-to-point basis, including a dial-up service; or
(c) a service, or a class of services, that the Central Government may notify as not being a broadcasting service;

(4)"Chairperson" means the Chairperson appointed under subsection (4) of section 7;

(5)"channel" means a set of frequencies used for transmission of a programme;

(6)"Commission" means the Communications Commission of India established under, sub-section (1) of section 6 ;

(7)"communication" means the process of conveyance of content through transmission, emission or reception of signals, by wire or other electromagnetic emissions;

(8)"communication service" means a networking service or network application service or value added network application service or a content application service;

(9)"content" means any sound, text, data, picture (still or moving) other audio-visual representation, signal or intelligence of any nature or any combination thereof which is capable of being created, processed, stored, retrieved or communicated  electronically".

(10)"content application service" means an application service which provides content meant for the public and includes such other services as may be prescribed;

(11) "frequency" means frequency of electromagnetic waves used for providing a communication service;

(12) "grantee" means a person who has been granted registration under Chapter VII;

(13) "license" means a license granted under Chapter VII or Chapter VIII;

(14) "licensee" means a person who has been granted a license;

(15) "Member" means a Member of the Commission appointed under section 7 and includes the Chairperson;

(16) "network application service" means the service provided by means of one or more networking services and includes such other services as may be prescribed;

(17) "network infrastructure facilities" means any element or combination of elements of physical infrastructure, which would be utilised by licensees for providing networking services and includes such other facilities as may be prescribed;

(18) "network service" means a service for carrying communications by means of guided or unguided electromagnetic waves and includes such other services as may be prescribed;

(19) "notification" means a notification published in the Official Gazette and the expression "notified", with its cognate meaning and grammatical variation, shall be construed accordingly;

(20)"post" means a post and includes a pole, tower, standard, stay, strut, cabinet, pillar or any above ground contrivance for carrying, suspending or supporting any network infrastructure facility;

(21)"prescribed" means prescribed by rules made by the Central Government under this Act;

(23)"programme code" means the code specified under section 20;

(24)"public authority" means and includes -
(i) the Central Government;
(ii) a State Government;
(iii) any person, agency or organisation engaged in land development for public use, or in roads for public transportation.
(iv) any local authorities legally entitled to, or entrusted by the Central or any State Government with, the control or management of any municipal or local fund; and
(v) any institution, concern or undertaking or body which is financed wholly or substantially by funds provided directly or indirectly by the Government that may be specified by notification in this behalf by the Central Government.

(25)"public service broadcaster" means any body created by Act of Parliament for the  purpose of public service broadcasting;

(26)"registration" means the registration granted under chapter VII;

(27)"regulations" mean regulations made by the Commission under this Act;

(28)"Secretary-general" means the Secretary-general appointed under subsection (1) of  section 15.

(29)"service provider" includes any person who provides a communication service;

(30)"spectrum" means a continuous range of continuous electromagnetic wave  frequencies upto and including a frequency of 3000 giga hertz;

(31)"Spectrum Manager" means Wireless Advisers to the Government of India notified as Spectrum Manager, Government of India under sub Section (3) of section 23;

(32)"subscriber of a service" means a person who subscribes to a communication service primarily for his own use;

(33) "Universal Service Obligation" - means obligation as may be prescribed;.

(34) "value added network application service" means the service provided by means of value addition using one or more network application services and includes any article or apparatus as may be prescribed;

(35)"wireless equipment" means any equipment in use or capable of use in wireless communication and includes any article or apparatus as may be prescribed;

(36)"wireless communication" means any communication without the use of wire or cable.

CHAPTER II

REGULATION OF USE OF SPECTRUM, COMMUNICATION SERVICES, NETWORK INFRASTRUCTURE FACILITIES, AND WIRELESS EQUIPMENT.

Prohibition of use of spectrum without assignment

3.
No person shall use any part of the spectrum without assignment from the Central Government or the Commission as provided for in this Act.

Provision of services, etc.

4 .
(1) No person other than a public service broadcaster shall -
(a) own or provide any network infrastructure facility, or
(b) provide any networking service, or any network application service or any value added network application service, or any content application service, without a licence or registration:

Provided that all facilities and services exempted from licensing or registration immediately before the commencement of this Act shall continue to be so exempt under this Act, until otherwise notified by the Central Government.

(2)The Central Government may, by notification, exempt any -
(a)person, or class of persons; or
(b)facility or service, from the provisions of this section.

Prohibition of possession of wireless equipment without a license

5.
(1)  No person shall possess any wireless equipment without obtaining a license in accordance with the provisions of this Act:

Provided that the Central Government may, by notification, exempt in the public interest any person or class of persons or any wireless equipment or category of wireless equipment from the provisions of this section.

(2)  Nothing contained in subsection (1) shall apply to -
(a) any person or equipment. licensed under any law for the time being in force immediately before the commencement of this Act; or
(b) any person or equipment exempted from the licensing immediately before the commencement of this Act, until otherwise notified by the Central Government.

CHAPTER III

COMMUNICATIONS COMMISSION OF INDIA

Establishment of Commission

6.
(1) With effect from such date as the Central Government may, by notification appoint in this behalf, there shall be established for the purposes of this Act, a Commission, to be known as the Communications Commission of India. The Head Office of the Commission shall be located at Delhi with Regional Offices at Calcutta, Chennai and Mumbai .

(2) The Commission shall be a body corporate by the name aforesaid, having perpetual succession and a common seal with power to acquire, hold and dispose of property, both movable and immovable and to contract, and shall by the said name sue and be sued.

(3) The Commission shall consist of the following Members, namely:-
(a) a Chairperson;
(b) not more than ten persons to be appointed as Members; and
(c) the Spectrum Manager, as ex-officio member.

(4) The Chairperson and not less than six Members, (other than the ex-officio Member), shall be whole-time Members and the remaining shall be part time Members.

Appointment of Chairperson and Members.

7.
(1) The Members (except the ex-officio Member) shall be appointed by the Central Government by notification, from amongst persons recommended by a search committee as may be prescribed.

(2) One-half of the Members shall be appointed from amongst persons of eminence in the fields of literature, performing arts, media, culture, education, films and from persons prominent in social and consumer activities.

(3) One-half of the Members shall be appointed from amongst persons of eminence in the specialized fields such as, telecommunications, broadcasting technology, information technology, finance, management and administration or law.

(4) The Chairperson shall be appointed by the Central Government, by notification, on the recommendation of the search committee referred to in subsection (1) from amongst persons of eminence in one or more fields enumerated in subsection (2) and (3).

(5) Before appointing a person as Chairperson or other Member, the Central Government shall satisfy itself that the person does not have any such financial or other interests as is likely to affect prejudicially his functions as such Member.

(6) A person, who is in the service of Government, shall have to retire or resign from service before entering the office of Chairperson or whole time Member.

Term of office of Chairperson and Members.

8.
(1) The Chairperson and whole-time Members shall hold office for a term of five years from the date on which they enter upon their office or untill they attain age of 65 years whichever is earlier. Provided that the Chairperson and whole-time members shall not be eligible for re-appointment

(2) The tenure of part time Members shall be such as may be prescribed.

(3) The Chairperson shall have powers of general superintendence and direction in the conduct of affairs of the Commission and shall, in addition to presiding over the meetings of the Commission, exercise and discharge such powers and functions of the Commission as may be assigned to the Chairperson by the Commission.

(4) The Chairperson or any Member of the Communications Commission may resign from his office by giving notice thereof in writing to the Central Government and on such resignation being accepted, the Chairperson or such other Member shall be deemed to have vacated office.

Removal from office of Chairperson and Members.

8.
The Central Government may remove from office any member who -

(a) has been adjudged insolvent, or

(b) has been convicted of any offence, which in the opinion of the Central Government involves moral turpitude; or

(c) has become physically or mentally incapable of acting as a Member, or

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as Chairperson or other Member; or

(e) has so abused his position as to render his continuance in office prejudicial to the public interest

No such member shall be removed from his office under clause (d) or clause (e) above unless he has been given a reasonable opportunity of being heard in the matter.

Salary and allowances of Chairperson and Members

9.
The salary and allowances payable to, and the other terms and conditions of service of the Chairperson and Members shall be such as may be prescribed:

Provided that neither the salary and allowances nor the other terms and conditions of service of the Chairperson or a Member shall be varied to their disadvantage after appointment

10.

Vacancy or defect not to invalidate proceedings.

11.
No act or proceeding of the Commission shall be invalidated merely by reason of -

(a) any vacancy in, or any defect in the constitution of, the Commission; or

(b) any defect in the appointment of a person acting as a Member; or

(c) any irregularity in the procedure of the Commission not affecting the merits of the case.

Functions of Regional Offices.

12.
The Regional Offices of the Commission at Calcutta, Mumbai and Chennai will perform such functions as may be determined by regulation ***.

Meetings of Commission.

13.
(1)The Commission shall meet at such times and places and shall observe such procedure in regard to the transaction of business at its meetings as may be provided by regulations.

(2) A Member (other than the Chairperson) shall be deemed to have vacated his or her office if he absents himself for three consecutive meetings of the Commission without the leave of the Chairperson.

(3) The Chairperson or, if he is unable to attend a meeting of the Commission, any other Member nominated by the Chairperson in this behalf and, in the absence of such nomination or where there is no Chairperson, any other Member chosen by the Members present from among themselves shall preside at the meeting of the Commission.

Power of Commission to regulate its procedure.

14.
(1) The Commission shall have, for the purposes of discharging its functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908, while trying a suit, in respect of the following matters, namely:-

(a) summoning and enforcing the attendance of any person and examining him on oath;

(b) requiring the discovery and production of documents;

(c) receiving evidence on affidavits;

(d) issuing commissions for the examination of witnesses or documents;

(e) subject to the provisions of section 123 and 124 of the Indian Evidence Act, 1972, requisitioning any public record or document or a copy of such record or or document, from any office;

(f) dismissing an application for default or deciding it, ex parte;

(g) setting aside any order of dismissal of any application for default or any order passed by it, ex parte; and

(h) reviewing its decisions;

(i) granting interim relief; and

(j) any other matter which may be prescribed.

(2) Every proceeding before the Commission shall be deemed to be judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196, of the Indian Penal Code and the Commission shall be deemed to be a civil court for the purposes of sections 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.

(3) The Commission shall not be bound by the procedure laid down by the Code of Civil Procedure, 1908, but shall be guided by the principles of natural justice and, subject to the other provisions of this Act and of any rules, the Commission shall have powers to regulate its own procedure, including the fixing of places and times of business.

Secretary-general of the Commission.

15.
(1) The Secretary-general shall be appointed by the Commission and shall be its Chief Executive Officer and shall exercise and discharge such powers and functions as determined by regulation.

(2) For the purpose of subsection (1) aforesaid the Commission may seek from the Central Government a panel of not less than three officers who are eligible to be, or are of the rank of, the Secretary to the Government of India for being appointed as Secretary-general

(3) The terms and conditions, and period of service, of the Secretary-general shall be such as maybe prescribed.

Setting up of Panel, Distribution of Business, etc.

16.
(1) The Commission shall set up a Panel from amongst Members appointed under subsection (2) of section 7 to deal with matters in relation to the content in content application services, and the Chairperson shall preside over the meetings of the Panel: Provided that wherever necessary the Chairperson may place before the Commission any issue relating to the matters referred to in this section.

(2) Except for the power to make regulations, the Commission may, by general or special order, make provisions for the distribution of its business amongst Members as may be considered appropriate and necessary.

(3) For the discharge of its functions under this act, the Commission may, if it considers necessary, set up bureaus or divisional organizations on the basis of its principal workload operations and subject to the provisions of section 53, such bureaus or divisional organizations shall be provided with such officers and other employees as are necessary to perform their functions.

(4) The Commission may, by order in writing, authorize any District Magistrate or Sub-Divisional Magistrate in any area or any other officer of the Central Government or State Government or Union territory Administration to implement and ensure compliance of its directions and orders; and when so directed or authorized, such Magistrate or officer shall be bound to implement and carry out such directions and orders.

CHAPTER IV

OBJECTIVES OF THE COMMISSION

Objectives and guiding principles

17.
The Communications Commission of India while exercising its functions shall be.guided by the following principles governing the administration of this act namely :

(i) that the communication sector is developed in a competitive environment and in consumer interest;

(ii) that communication services are made available at affordable cost to all especially uncovered areas including the rural, remote, hilly and tribal areas;

(iii) that there is increasing access to information for greater empowerment of citizens and towards economic development;

(iv) that quality, plurality, diversity and choice of services are promoted;

(v) that a modern and effective communication infrastructure is established taking into account the convergence of information
technology, media, telecom and consumer electronics;

(vi) that defence and security interests of the country are fully protected;

(vii) that introduction of new technologies, investment in services and infrastructure, and maximisation of communications facilities and services (including telephone density) are encouraged;

(viii) that equitable, non-discriminatory interconnection across various networks are promoted;

(ix) that licensing and registration criteria are transparent and made known to the public;

(x) that an open licensing policy allowing any number of new entrants (except in specific cases constrained by limited resources such as the spectrum) is promoted; and

(xi) that the principle of a level playing field for all operators, including existing operators on the date of commencement of the Act, is promoted so as to serve consumer interest.

CHAPTER V

POWERS, DUTIES AND FUNCTIONS OF THE COMMISSION

Powers duties and functions of the Commission.
18. (1) It shall be the duty of the Commission to facilitate and regulate all.matters relating to.carriage and content of communications.

(2) Without prejudice to the generality of the provisions contained in subsection (1), the.Commission shall-
(i) Carry out management, planning and monitoring of the spectrum for non-strategic/ commercial usages subject to the provision of section 24A;
(ii) grant licenses for purposes of the Act, and determine and enforce license conditions and determine fees (including fees for usage of spectrum) wherever required;
(iii) determine appropriate tariffs and rates for licensed services, wherever considered necessary and keeping in view the objectives and guiding principles in the Act;
(iv) ensure that the grant of licenses will not result in eliminating competition or in one or more service providers becoming dominant to the detriment of other service providers or consumers;
(v) promote competition and efficiency in the operation of communication services and network infrastructure facilities;
(vi) formulate and determine conditions for fair, equitable and nondiscriminatory access to a network infrastructure facility or network service such other related matters in respect thereof;
(vii) take measures to protect consumer interests and promote and enforce universal service obligations;
(viii) formulate and lay down programme and advertising codes in respect of content application services;
(ix) formulate and lay down commercial codes in respect of communication services and network infrastructure facilities;
(x) take steps to regulate or curtail the harmful and illegal content on the internet and other communication services;
(XI) formulate and lay down codes and technical standards and norms to ensure quality and interoperability of services and network infrastructure facilities (including equipment);
(xii) carry out any study and publish findings on matters of importance to the consumers, service providers and the communications industry;
(xiii) institutionalise appropriate mechanisms and interact on a continual basis with all sectors of industry and consumers, so as to facilitate and promote the basic objectives of the Act; to encourage self regulatory codes and standards;
(xiv) report and make recommendations on such matters as may be referred to it by the Central Government;
(xiv) report and make recommedations either suo moto or on such matters as may be referred to by the Central Government in the matter prescribed
(xv) perform all or any functions in furtherance of the objects of this Act, or such as may be prescribed.

(3) The commission shall ensure transferancy whilst exercising its powers and discharging its functions.

Power to make recommendation in certain cases

19. The Commission may at any time make appropriate recommedations to the Central Government with regard to any particular pratice or practices that impinges upon or adversely affect the interest of the sovereignty and integrity of India, security of the state, friendly relations with foreign countries or State, public order, decency or morality.

Codes and Standards

20. The Commission shall by regulations from time to time specify programme codes and standards which may include inter alia practices -
(i) to ensure that nothing is contained in any programme which is prejudicial to the interests of the sovereignty and integrity of India, the security of State, friendly relations with foreign States, public order or which may constitute contempt of court, defamation or incitement to an offence.
(ii) to ensure fairness and impartiality in presentation of news and other programmes.
(iii) to ensure emphasis on promotion of Indian culture, values of national integration, religious and communal harmony, and a scientific temper.
(iv) to ensure in all programmes decency in portrayal of women, and restraint in portrayal of violence and sexual conduct;
(v) to enhance general standards of good taste, decency and morality.
(vi) to ensure avoidance of offence to religious views and belief; and
(vii) to be followed in connection with the prevention of unjust and unfair treatment in any programme, and unwarrented infringement of privacy in, or in connection with, obtaining of material included in such programme.

Hearing of complaints and resolution of disputes by the Commission

21.
(1). The Commission shall -

(a) decide any dispute or matter -
(i) between two or more service providers on issues relating to spectrum interference, interconnectivity, denial of fair access and practices restrictive of fair competition; and
(ii) between a service provider and a group of consumers.
(iii) arising out of enforcement of any provision of this Act;

(b) hear and determine any complaint from any person regarding contravention of the provisions the Act, rules, regulations or orders made thereunder including contraventions relating to any formulated codes and technical standards, and of other terms and conditions subject to which any license or registration was granted; and if necessary refer the matter for adjudication under Chapter X.

(2) For purposes of sub section (1) the Commission shall pass such orders and issue such directions as it deems fit.

(3) The Commission shall endeavour to decide disputes and complaints referred to in sub-section (1) as expeditiously as possible"

Directives by the Central Government.

22 . (1) In exercising its licensing and regulatory functions the Commission.shall follow such policy directives as may be communicated to it in writing by the Central Government from time to time. Such directives may include the route and the mode in which any services are to be licensed, whether by way of auction or in any other form.

(2) In framing the policy directives the Central Government shall take into account the objectives and guiding principles governing the administration of the Act.

(3) The decision of the Central Government whether a question is one of policy or not shall be final.

(4) The Commission may request the Central Government by means of a written.communication for a review of any policy directive, and if any such request is made the Central Government will respond in writing to such request with all expeditious despatch.

CHAPTER VI

FREQUENCY SPECTRUM MANAGEMENT

Spectrum Management Committee
23.
(1) The Central Government shall be responsible for coordination with international agencies in respect of matters relating to Spectrum Management and also for allocation of available spectrum for strategic and non-strategic or commercial purposes.

(2) For the purposes of discharging the responsibility under sub-section (1), the Central Government shall establish, by notification, a Spectrum Management Committee with the Cabinet Secretary as its Chairman and consisting of such other members as may be notified by it from time to time.

(3) The Central Government shall notify Wireless Advisor to the Government of India as Spectrum Manager, Government of India, to act as Member-Secretary of the Spectrum Management Committee.

(4) Subject to general supervision and control of the Spectrum Management Committee, the Spectrum Manager shall, inter-alia, perform the following functions, namely :- (i)to co-ordinate with international agencies, matters relating to overall spectrum planning, use and its management; (ii) to carry out spectrum planning, and assign frequencies to the Central Government and to State Governments to meet their vital needs, including those of defence , national security and of the public service broadcaster. (iii) to allocate frequencies or band of frequencies including frequencies which are to be assigned by the Commission; and reassignment of frequencies from time to time. (iv) to review constantly and make available as much spectrum as possible for assignment by the Commission, in particular by optimising usages, and. (v) monitoring as appropriate, in consultation with the Commission, the efficiency of the utilisation of the spectrum by all users including investigation and resolution of spectrum interference; and (vi) after meeting the requirements of the Central Government and of State Governments for fulfilling their vital needs including those of defence, national security and public service broadcaster, the Spectrum Manager shall make the spectrum available, to the maximum extent possible, for assignment by the Commission, both in the shared as well as in the exclusive bands.

(5) Subject to the general supervision and control of the Spectrum Management Committee, the Spectrum Manager shall assign frequencies on payment of such fee as may be prescribed.

Assignment of spectrum

24.
(1) The Commission shall be responsible for assignment of the non strategic and commercial spectrum to various users: Provided that the Commission shall assign such frequencies in case these are not exclusively allocated to it, only with the prior approval of the Spectrum Management Committee.

(2)Whenever the Commission seeks allocation of additional spectrum for assignment , including in the shared bands, a process for mutual consultation between the Commission and the Spectrum Manager shall be initiated in such manner and within time frame as may be prescribed.

Commission to notify schemes for assignment of spectrum
25.
(1) Before assigning any part of spectrum, the Commission shall prepare and notify from time to time one or more schemes or plans for such assignment, after such public hearing as it may consider appropriate.

(2) The Central Government may, by notification, determine the class or classes of persons or services for preferential assignment of any frequency or spectrum by the Commission.

CHAPTER VII

LICENSES FOR REGISTRATION

License or registration of service providers .
26. (1) Having regard to the necessity of serving the public interest, ensuring competition and prevention of monopoly in the provision of network infrastructure facilities and communication services, the Commission may, by regulations specify, -
(i) eligibility conditions for granting of licenses or registrations;
(ii) restrictions regarding ownership and control of the media ;
(iii) restrictions on the number of licenses or extent of accumulation of interest in such licenses by a person; and
(iv) such other conditions as may be considered necessary from time to time.

(2) (a) The Commission may determine by regulation, the obligations, conditions, restrictions, tariffs and rates subject to which service provider shall provide facilities and services referred to in sub-section(1).
(b) The Commission may, by regulations , determine the conditions subject to which a license or registration may be granted or transferred and where a license or registration is transferred, the transferee shall be deemed as licensee or grantees, as the case may be , for the purpose of this Act .

(3) Subject to the provisions of sub-section (1), the Commission may grant license or registration in such manner, and within such time , subject to such terms and conditions, on payment of such fees and after following such procedure as may be determined by regulations. Provided that the fee for registration shall not exceed thirty thousand rupees.

(4) The Commission shall notify , from time to time, one or more schemes or plans for licensing or registration containing such details as may be specified by regulations: Provided that the Commission shall , before finalising such schemes or plans, consult the Central Government in order to ensure that the defence and security interests of India are fully protected.

(5) Any scheme or plan referred to in sub-section (4) may provide for eligibility conditions, number, and scope of licenses and registration and such other matters as the Commission may consider necessary.

(6) The Commission may grant license to any person -
(a) to provide or own network infrastructure facilities.
Explanation.-For the purposes of this clause, network infrastructure facilities shall include earth station, cable infrastructure, wireless equipments, towers, posts, ducts and pits used in conjunction with other communication infrastructure, and distribution facilities including facilities for broadcasting distribution;
(b) to provide networking services
Explanation.-For the purposes of this clause, networking services shall include band-width services, fixed links and mobile links;
(c) to provide application services.
Explanation.-For the purposes of this clause, network application services shall include public switched telephony, public cellular telephony, global mobile personal communication by satellite, internet protocol telephony, radio paging services, public mobile radio trunking services, public switched data services and broadcasting (radio or television service excluding continued);
(d) to provide content application services.
Explanation,--For the purposes of this clause, content application services shall include satellite broadcasting, subscription broadcasting, terrestrial free to air television broadcasting and terrestrial radio broadcasting;
(e) to prove value added network application services such as internet services and unified messaging services.
Explanation.-For the removal of doubts, it is hereby declared that information technology enabled services such as call centers, electronic-commerce ,tele-banking ,tele-education, tele-trading ,tele-medicine ,videotex and video conferencing shall not be licensed under this Act.

(7)The Commission may, while granting a license for any one of the categories under sub-section (6), confine or limit the scope of the facility or service to be provided by the licensee in each category of license , and also specify the conditions for providing that facility or services.

(8) The Commission may,while granting a license under sub-section (6) grant licenses either singly or jointly for one or more of the categories of facilities or services specified therein :. Provided that no license shall be granted under this sub-section if it conflicts with the objectives and guiding principles set out in Chapter IV particularly in relation to ensuring fair access and promotion of competition.
Provided that no license shall be granted under this sub-sectuib, if it conflicts with the objectives and guiding principles set out under this Act particularly in relation to ensuring fair access and promotion of competition.
Explanation.-No license shall be required in respect of any person or class of persons, or any facility or service, which has been exempted under the proviso to clause (b) of sub-section(1) of section 4 unless specifically notified by the Central Government for the purposes of licensing under this Act.


Period and form of license or registration.

27. (1) A license or registration shall be granted for such period as may be specified by regulations.

(2) A license or registration ,granted under this Act ,shall be in such form and shall be subject to the payment of such fees as may be determined by regulations:
Provided that the fee for registration shall not exceed the amount referred to in the proviso to sub-section(3) of section26:
Provided that the Central Government may, by notification, in the public interest, exempt any person or class of persons from payment of the license fee or registration fee.


Duties of service providers

28 (1) Every service provider shall , wherever required or applicable-
(i) give effect to Universal Service Obligations;
(ii) provide such life saving services as may be prescribed;
(iii) provide service to any person on demand within a reasonable period of time and on a non-discriminatory basis; and
(iv) follow the codes and standards laid down and specified by the Commission;

(2) Every service provider of a content application service shall , wherever required or applicable --
(i) endeavour to provide a suitable proportion of programme of indigenous origin; and
(ii) ensure that no programme forming part of its services infringes any copyright.

(3) Without prejudice to the foregoing provisions of this Act, every service provider holding a license for providing distribution of broadcasting services shall, amongst others, -
(i) provide a specified number and type of broadcasting services, including those of the public service broadcaster, in such manner, as may be prescribed;
(ii) include only licensed broadcasting service in his delivery package for the purposes of distribution; and
(iii) use not more than such number of channels as specified by regulations, out of the total channel capacity of the system, for providing his own programming.


Certain Agreements to be registered with the Commission

29. Every agreement entered into or made by any service provider or infrastructure facility provider ,falling under one or more of the following classes shall, within sixty days from the making of such agreement, be registered with the Commission namely:-
(a) shareholders or promoters agreements ;
(b) interconnectivity agreements; and
(c) Such other agreements as may be specified by regulations.

CHAPTER VIII

LICENSING OF POSSESSION OF WIRELESS EQUIPMENT

License for wireless equipment

30. (1) Subject to the provisions of sub-section (1) of section 5, any person who intends to posses any wireless equipment shall make an application to the Commission for the grant of a license.

(2) Every application shall be in such form and shall be accompanied by such fees as may be determined by regulations.

(3) The Commission shall , on receipt of an application under sub-section (1), after making such enquiries as it deems fit, grant the license or reject the application:
Provided that no application shall be rejected unless an opportunity of being heard is given to the applicant;
Provided further that no application for a license shall be rejected except on grounds of security of India or part thereof , public order or other public interest.

(4) Every license granted under this section shall be subject to such conditions and restrictions as may be determined by regulations.

CHAPTER IX

SPECIAL PROVISION IN RESPECT OF CERTAIN SERVICES

CHAPTER X

BREACH OF TERMS AND CONDITIONS OF LICENSE OR REGISTRATION, CIVIL LIABILITY AND ADJUDICATION

Breach of terms and conditions of licenses, etc.

32.(1) In any case of breach of any of the terms of the license or registration or failure to comply with any decision, direction or order of the Commission, it may, after providing an opportunity to the party concerned of being heard, do any one or more of the following, namely:-
(a) direct the licensee or grantee to do or abstain from doing any act or thing to prevent such breach or for such compliance;
(b) suspend the license or registration for a specified period;
(c) curtail the period of the license or registration ;
(d) revoke the license or registration ;and
(e) initiate adjudication proceedings under this chapter.

(2) If the Commission has a reason to believe that the terms and conditions of a license or registration for providing a not work infra-structure facility or Communication service under this Act have been or are being breached, the Commission may direct or order the seizure of the equipment being used for provision of such facility or service, and for this purpose the Commission may ,by order in writing, authorise any District Magistrate, or Sub-Divisional Magistrate in any area ,or any other officer of the Central Goverment or State Government or Union territory Administration , to implement and ensure compliance of its directions and orders; and when so authorized , such Magistrate or officer shall be bound to carry out the directions and orders of the Commission.

(3) Any person aggrieved by such seizure under sub-section(2) , may prefer an appeal to the Appellate Tribunal within thirty days of the seizure and the Appellate Tribunal may pass such orders ,as expeditiously as possible as to the disposal of the property so seized as it may deem fit. Provided that no such equipment shall be retained by the Commission or the authorised officer for a period exceeding forty five days from the date of its seizure, unless the Appellate Tribunal on the report made by the authorised officer, approves such retention for a longer period.


Civil liability for breach of terms and conditions of license. etc.

33.
If any licensee or grantee commits breach of , or fails to comply with any terms and conditions subject to which a license or registration, as the case may be, was granted or fails to comply with any rule, regulation or order made under this Act, the licensee or grantee shall be liable to a civil liability under this Chapter.


Civil liability for contravention of the provision relating to transmission etc.

34.
If any person transmits or distributes any communication or performs any service incidental thereto, by the use of a network infrastructure facility, communication service or wireless equipment which is required to be licensed or registered under this Act and not so licensed or registered, as the case may be, or has been established or maintained or operated in contravention of the provisions of this Act or any rule or regulation made thereunder, such person shall be liable to a civil liability under this chapter.

Civil liability for delivery of content through facilities, services or equipments not licensed or registered.

35.
If any person delivers any content for transmission or accepts delivery of any content sent by the use of network infrastructure facility, communication service or wireless equipment knowing or having reason to believe that such facility, service or equipment has been established or has been maintained or operated without a license or registration or in contravention of the provisions of this Act or any rules or regulation made thereunder, such person shall be liable to a civil liability under this chapter.

Civil liabilities for failure to Register Agreements

36. If a service provider fails without reasonable excuse to register an agreement, which is required to be registered as provided for in section 29, he shall be liable to civil liability under this chapter.

Civil liability for failure to comply with the decision, direction or orders of the Commission.

37. If any person wilfully fails to comply with any decision, direction or order of the Commission, he shall be liable to civil liabilities under this chapter.

Filing of complaint, reference for adjudication etc.

38.
(1) A complaint may be filed before the Commission alleging that a service provider or any other person has incurred a liability to a civil liability under this Chapter.

(2) Every complaint under sub- section (1) ,except a complaint under section 33, shall be filed within sixty days from the date on which any act or conduct constituting the contravention took place and shall be in such form as may be prescribed:

Power to adjudicate

39. (1) For the purpose of adjudging whether any person has contravened any of the provisions of this Act, any rules, regulations, made thereunder or directions or orders issued under this act is liable to a civil liability under this Chapter, the Commission shall, subject to the provision or subsection (3), appoint by general or special order, an officer of the commission as Adjudicating Officer for holding an inquiry in the manner provided for herein and in the regulations.

(2) The Adjudicating Officer shall give the person referred to in sub-section (l), a reasonable opportunity for making a representation in the matter, and if, on inquiry, the Adjudicating Officer is satisfied that the person has committed any contravention, and is liable to a civil liability, then, such liability as may be determined, by order, shall be imposed by the Adjudicating Officer on such person:

Provided that where the Adjudicating Officer is satisfied that there has been no contravention, he may pass such order as he deems fit.

(3) No person shall be appointed as an Adjudicating Officer unless he possess such experience as mey be prescribed.

(4) Where more than one Adjudicating officers are appointed, the Commission shall specify, by order, the matter and places with respect to which such officers shall exercise their jurisdiction.

(5) For the purpose of discharging his powers and functions, every Adjudicating officers shall have the same powers as are vested in a civil court under the code of Civil procedure, 1908 in respect of the following matters, namely:-
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) requiring the discovery and production of documents
(c) receiving evidence on affidavits;
(d) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872, requisitioning any public record or document or a copy of such record or document or a copy of such record or document, from any office;
(e) issuing commission for the examination of witness or for production of documents;
(f) dismissing an application for default or deciding it ex parte;
(g) setting aside any order of dismissal of any application for default or any order passed by him exparte;
(h) reviewing his decisions;
(i) granting interim relief; and
(j) any other matter which may be prescribed.

(6)The Adjudicating Officer shall endeavour to decide disputes and complaints referred to him as expeditiously as possible.

(7) Any proceeding before the Adjudicating Officer shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purpose of sections 196, of the Indian Penal Code and the Adjudicating Officer shall be deemed to be a civil court for the purpose of section 195 and chapter XXXVI of the Code of Criminal Procedure, 1973.

40. (1). If any person damages, displaces or destroys and cable or any part of the network infrastructure facility laid, established or place in accordance with the provisions of this Act, or if the communication services by reason of the damage or displacement so caused is interrupted, such person shall be liable, -
(a) where the act is wilful and deliberate, to a civil liability which may extend to rupees five crores and where the actual loss or damage caused is more than rupees five crores then the civil liability up to the extent of damage;
(b) where the act is not wilful or deliberate, a civil liability not exceeding the actual loss or damage caused.

(2) out of the civil liabilities imposed under sub-sec. (1), such sum as may be determined by the Adjudicating Officer shall be payable to the licensee or the grantee, as the case may be, as reasonable compensation for damage suffered.

41. (l) If any person contravenes the provision of sub-section (l), such sum as may be liable to a civil liability as determined by the adjudicating Officer under this chapter.

42. (1) Any penalty imposed under this Chapter shall not exceed fifty crore rupees.

(2) The Adjudicating Officer shall, While adjudging the quantum of civil liability, under this Chapter, the Adjudicating Officer, have due regard to the provisions of this Act, and also to the following factors, namely:-
(a) the amount of revenue loss to the Government;
(b) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default;
(c) the amount of loss caused to any person as a result of the default;
(d) the repetitive nature of the default; and
(e) that the amount adjudged shall be such as may act as a deterrent even though no financial loss has been caused by such contravention.

CHAPTER XI

COMMUNICATIONS APPELLATE TRIBUNAL

Establishment of Appellate Tribunal.

43. (1) The Central Government shall, by notification, establish an Appellate Tribunal to be known as the Communications Appellate Tribunal, to exercise the jurisdiction, powers and authority conferred on it by or under this Act.

(2) Any person aggrieved by any decision or order of the Commission may prefer an appeal to the Appellate Tribunal.

(3) (a) Every appeal under sub-section (2) shall be preferred within a period of sixty days from the date on which a copy of the decision or order made by the Commission is received by the person aggrieved and the appeal shall be in such form, verified in such manner and be accompanied by such fee as may be prescribed:
(b) Any person aggrieved by an order of penalty imposed by the Adjudicating Officer may prefer an appeal to the Appellate Tribunal within sixty days from the date on which such order is received and the appeal shall be in such form, verified in such manner and accompanied by such fee as may be prescribed:
Provided that the appellate Tribunal may entertain an appeal under clause (a) or clause (b) after expiry of the said period of sixty days, if it is satisfied that there was sufficient cause for not filing the same within that period.

(4) On receipt of an appeal under sub-section (2), or sub section (3), the Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit.

(5) The Appellate Tribunal shall send a copy of every order made by it to each of the parties to the appeal and to the Commission or to the Adjudicating Officer, as the case may be.

(6) The Appellate Tribunal shall endeavour to deal with and dispose of every appeal preferred under sub-section (2) and sub section (3) as expeditiously as possible; and all parties appearing before the Appellate Tribunal shall actively assist in ensuring that the appeal is determined and disposed off not later than ninety days from the date of filing of the appeal.

(7) The Appellate Tribunal may, on its own motion or otherwise for the purpose of examining the legality, propriety or correctness of any order or decision of the Commission or of the Adjudicating Officer, call for all relevant records and make such orders as it thinks fit:
provided that the power under this sub-section shall not be invoked after the expiry of three months from the date of such order or decision. Composition of Appellate Tribunal.

44. (1) The Appellate Tribunal shall consist of a Chairperson and not more than six Members to be appointed, by notification, by the Central Government.

(2) The appointment of Chairperson and Members of the Appellate Tribunal shall be made by the Central Government in consultation with the Chief Justice of India.

(3) The appointment of members of the appellate Tribunal shall be from amongst persons recommended by the search committee as may be prescribed.

(4) Subject to the provisions of this Act -
(a) the jurisdiction of the Appellate Tribunal may be exercised by Benches thereof;
(b) a bench may be constituted by the Chairperson of the Appellate Tribunal consisting of two or more Members as the Chairperson may deem fit;
Provided that every bench shall be presided over by a Judicial member.
Explanation: For the purposes of this section "Judicial Member" means any member of the Appellate Tribunal who has been a judge of a High Court;
(c) the benches of the Appellate Tribunal shall ordinarily sit at Delhi and also at such other places as the Central Government may notify, in consultation with the Chairperson of the Appellate Tribunal.
(d) the Central Government shall, on the recommendation of the Appellate Tribunal, notify the areas in relation to which each bench of the Appellate Tribunal may exercise jurisdiction.

(5) The Chairperson of the Appellate Tribunal may, as the exigencies of business may require, request a member of the Appellate Tribunal sitting on one bench of the Appellate Tribunal to sit on another bence thereof.

(6) If at any stage it appears to the Chairperson or a bench of the Appellate Tribunal that the case or matter is of such a nature that it ought to be heard by a bench consisting of more than two members of the Appellate Tribunal, the case or matter may be transferred by the Chairperson to a bench of more than two Members. Qualification, tenure, salary and allowances, vacancy of the Chairperson and Members of the Appellate Tribunal.

45. (1) A person shall not be qualified for appointment as the Chairperson or a Member of the Appellate Tribunal unless -
(a) in the case of the Chairperson, he is, or has been, a Judge of the Supreme Court;
(b) in the case of a Member, he is or has been a Judge of a High Court, or has held the post of Secretary to the Government of India or any equivalent post in the Central Government or the State Government for a period of not less than two years, or he is a person who is proficient in any of the fields specified in sub-sections (2) and (3) of section 7.

(2) The Chairperson and every Member of the Appellate Tribunal shall hold office as such for a term of five years from the date on which he enters upon his office;
Provided that no Chairperson or other Member shall hold office as such after he has attained-
(i) in the case of Chairperson, the age of seventy years;
(ii) in the case of any other Member, the age of sixty-five years.

(3) The salary and allowances payable to and the other terms and conditions of service of the Chairperson and other Members of the Appellate Tribunal shall be such as may be prescribed:
Provided that neither the salary and allowances nor the other terms and conditions of service of the Chairperson or a Member of the Appellate Tribunal shall be varied to his disadvantage after appointment.

(4) (a) If, for reason other than temporary absence, any vacancy occurs in the office of the chairperson or a member of the Appellate Tribunal, the Central Government shall appoint another person in accordance with the provisions of this Act to fill the vacancy.
(b) When the Chairperson of the Appellate Tribunal is unable to discharge his functions owing to absence, illness or any other cause, any member of the Appellate Tribunal, as authorised so to do by the Central Government, shall discharge the functions of the Chairperson until the day on which the Chairperson resumes charge of his functions.

(5) Before appointing any person as chairperson or member of the Appellate Tribunal, the Central Government shall satisfy itself that the person does not have any such financial or other interests as are likely to affect prejudicially his functions as such member.

(6) A person who is in the service of Government shall have to retire or resign from service before entering the office of chairperson or member of the Appellate Tribunal.

Resignation and removal

46. (1) The chairman or a member of the Appellate tribunal may resign his office by giving notice thereof in writing to the Central Government and on such resignation being accepted, the chairperson or the member shall be deemed to have vacated his office.

(2) The Central Government may remove from office, the chairperson or a member of the Appellate Tribunal, who -
(a) has been adjudged an insolvent; or
(b) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or
(c) has become physically or mentally incapable of acting as the Chairperson or a Member; or
(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as the chairperson or a member; or
(e) has so abused his position as to render his continuance in office prejudicial to the public interest.

(3) Notwithstanding anything contained in sub-section (2), the chairperson or a member of the Appellate Tribunal shall not be removed from his office on the ground specified in clause (d) or clause (e) of that sub-section unless the Supreme Court, on a reference being made to it in this behalf by the Central Government, has, on an inquiry, held by it in accordance with such procedure as it may specify in this behalf, reported that the Chairperson or a Member ought on such ground or grounds to be removed.

(4) The Central Government may suspend from office, the Chairperson or a Member of the Appellate Tribunal in respect of whom a reference has been made to the Supreme Court under sub-section (2), until the Central Government has passed an order on receipt of the report of the Supreme Court on such reference. Distribution of business amongst benches, etc

Distribution of business amongst benches,etc

47. (1) The Chairperson of the Appellate Tribunal may, from time to time, by order, make provisions as to the distribution of the business of the Appellate Tribunal amongst the Benches and also provide for the matters which may be dealt with by each bench thereof.

(2) On the application of any of the parties and after notice to the parties, and after hearing such of them as may desire to be heard, or suo motu without notice, the Chairperson of the Appellate Tribunal m