New Rules for Digital Bharat Nidhi

The Department of Telecommunications on August 30^th 2024 issued the Telecommunications (Administration of Digital Bharat Nidhi) Rules, 2024. This move is pivotal in shaping the landscape of telecommunications regulation in India. The rules come as an extension of the Telecommunications Act, 2024, and aim to streamline the administration and implementation of the Digital Bharat Nidhi (DBN) initiative.

Purpose and Background

The Digital Bharat Nidhi, as established under section 24 of the Telecommunications Act, 2024, is a fund dedicated to advancing the reach and quality of telecommunications services in India. On July 4, 2024, a draft of these rules was published, inviting public objections and suggestions. Following a review of feedback, the Central Government has now formalized the rules, which supersede certain provisions of the Indian Telegraph Rules, 1951, while respecting existing arrangements until their expiry.

Key Provisions of the Telecommunications (Administration of Digital Bharat Nidhi) Rules, 2024

1. Definitions
   • The rules define key terms such as “Administrator,” “Implementer,” and “Digital Bharat Nidhi,” ensuring clarity in the administration and implementation processes.
2. Powers and Functions of the Administrator
   • The Administrator, appointed by the Central Government, will oversee various functions including the selection of Implementers through bidding or nomination, formulation of bidding procedures, and settlement of disputes.
   • The Administrator will also manage the disbursement of funds, monitor and evaluate Implementers’ work, and create a digital portal for reporting and interaction.
3. Funding Mechanisms
   • Funding will be allocated to Implementers for schemes and projects that align with the objectives of the Digital Bharat Nidhi, which include enhancing telecommunication access in underserved areas, promoting research and innovation, and supporting start-ups in the telecommunications sector.
   • The rules specify modalities for funding, which may include full or partial funding, co-funding, or risk mitigation.
4. Criteria for Schemes and Projects
   • Projects must address various criteria such as improving telecommunications services in underserved areas, advancing next-generation technologies, and fostering innovation and sustainable practices in telecommunications.
5. Network Sharing
   • Implementers are required to share and provide access to telecommunication networks established under the Digital Bharat Nidhi on an open and non-discriminatory basis, in line with guidelines issued by the Administrator.
6. Selection Process for Implementers
   • The rules outline two primary selection processes for Implementers: bidding for telecommunications service promotion and research and development, and application-based selection for R&D projects. The Administrator also retains the discretion to nominate Implementers under special circumstances.

Implications and Impact

The introduction of these rules marks a significant step in modernizing India’s telecommunications infrastructure. By clearly defining the roles, responsibilities, and processes related to the Digital Bharat Nidhi, the rules aim to:

• Enhance Transparency and Efficiency: The structured selection and funding processes are designed to foster transparency and ensure that resources are allocated effectively to meet the DBN’s objectives.
• Promote Inclusive Growth: Emphasis on underserved areas and vulnerable groups ensures that the benefits of technological advancements reach those who need them most.
• Foster Innovation: By supporting research and development and encouraging start-ups, the rules aim to position India as a leader in telecommunications innovation.

Next Steps

With the rules now in effect, stakeholders in the telecommunications sector—including service providers, researchers, and policy-makers—will need to familiarize themselves with the new framework. The creation of a digital portal for interaction and reporting will facilitate ongoing engagement and oversight, ensuring that the Digital Bharat Nidhi achieves its intended goals.

Effective Date: August 30^th 2024.