Over the past 18 months, the Indian telecom sector has faced increasing scrutiny from the Department of Telecommunications (DoT) on security grounds. On 3 June, the DoT announced an amendment to the Commercial CUG VSAT Licence Agreement for the expansion of telecom services across India. This amendment introduces onerous obligations and restrictions which will greatly impact foreign telecom vendors.
All prior notifications are to be superseded by the new amendment. The salient features of the amendment are outlined below.
Internal security policy
From 1 April 2013, it is mandatory for all telecom licensees to ensure that all of their network equipment is tested in Indian laboratories. Prior to this date, telecom licensees are free to use any certifying agency of their choice for these testing procedures. The DoT will provide a list of certified agencies on its website. Telecom licensees must also conduct an annual audit on their networks (the first audit should be completed before 31 May 2012).
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The legislative and regulatory update is compiled by Nishith Desai Associates, a Mumbai-based law firm. The authors can be contacted at nishith@nishithdesai.com. Readers should not act on the basis of this information without seeking professional legal advice.
