#67 A Wired New World: India's Mixed Reception to the Telecom Act, 2023
Calling for Clarity - The Telecom Act, 2023’s definitional woes, Charging Ahead - India's New EV Connector Standard, VinFast to fast-track Indian EV manufacturing?
Today, Bharath Reddy shines light on the different interpretations surrounding the Telecom Act, 2023.
Also this week:
Miheer Karandikar pens a guest post on the challenges of regulating EV Chargers in India
Saurabh Todi follows that up with a brief note on VinFast’s foray into EV manufacturing in India
Also also,
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CyberPolitik: Calling for Clarity - The Telecom Act, 2023’s definitional woes
— Bharath Reddy
The Telecommunications Act, 2023, recently passed by the parliament replaces the Indian Telegraph Act, 1885 and the Indian Wireless Telegraphy Act, 1933. The way we communicate has come a long way since the telegraph and a reform was much needed.
In the weeks following the passing of the Act, the commentary around it have been mixed with major telcos and industry associations welcoming the much needed reforms and civil liberties groups criticising them. A major bone of contention has been the different interpretations about the scope of the Act and its implications. Many (read here, here, and here) have criticised the Act for its definitional ambiguity which could lay the foundation for a surveillance state. Others have welcomed it terming it as progressive for limiting its ambit to the network layer and exempting the application layer. The latter interpretation would likely exclude “OTT services” which include communication or entertainment services such as internet based messaging, voice or video calling, and streaming services.
If the scope of the Act includes the application layer, it could have serious implications for individual freedoms and for internet companies operating in India. Let's look into the reasons for the ambiguity.
The Telecommunications Act, 2023, defines "telecommunication" as “ transmission, emission or reception of any messages, by wire, radio, optical or other electro-magnetic systems, whether or not such messages have been subjected to rearrangement, computation or other processes by any means in the course of their transmission, emission or reception”. It goes on to define "telecommunication service" to mean “any service for telecommunication”. As an engineer who has worked in the telecom sector, for me, this seems to be a definition of the wired or wireless telecommunication infrastructure and not the applications or OTT services that run on top of the infrastructure.
But there is also a background that needs to be understood to better appreciate the ongoing debate. The Draft Telecommunications Bill, 2022, defined “telecommunication services" to mean “service of any description (including broadcasting services, electronic mail, voice mail, voice, video and data communication services, audiotex services, videotex services, fixed and mobile services, internet and broadband services, satellite based communication services, internet based communication services, in-flight and maritime connectivity services, interpersonal communications services, machine to machine communication services, over-the-top (OTT) communication services) which is made available to users by telecommunication, and includes any other service that the Central Government may notify to be telecommunication services”
Thus, there is a significant change in the definition of telecommunication services from the 2022 version to the 2023 version. The 2022 bill explicitly includes many application layer services within its ambit (such as internet based messaging or voice or video communication services), whereas in the 2023 version it is not explicitly included (the ambiguity however still persists). As the Internet Freedom Foundation notes in their analysis of the Telecom Bill, 2023, without an explanatory note or white paper the reasoning or inspiration for the changes remains unclear.
Telcos have lauded the Act for streamlining the licensing regime to remove many of the compliance burdens, bringing in predictability and availability of spectrum and for bringing in legal enforceability for right of way provisions. These can go a long way in enabling a faster rollout of telecom services as we move towards 5G.
The Act centralises a lot of the authorisation powers with the Union Government and leaves a lot of room for delegated legislation. This is concerning as they can be passed without the scrutiny of the parliamentary process. Reports indicate that the DoT is working on 30 rules based on Telecom Act, 2023. In the absence of transparency, as these rules are rolled out, some of the ambiguity over the scope of the Act should become clear.
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Technomachy 1: Charging Ahead - India's New EV Connector Standard
— Miheer Karandikar
The Bureau of Indian Standards recently approved an indigenously made charging connector standard that was developed in collaboration with the NITI Aayog, the Department of Science and Technology, electric two-wheeler maker Ather Energy, and various other government and industry stakeholders. This move is a step to try and alleviate the fears of EV owners, one where you end up at a charging station with your vehicle almost discharged but the connector doesn't fit. Though it seems like a move in the right direction, there is much to unpack with this decision.
There are broadly two types of EV chargers, classified based on the type of current they use: AC (alternating current) or DC (direct current). AC chargers, which are slower, are used in houses/offices and can draw current from the standard plugs we use daily. DC chargers, which are comparatively faster, need different setups. These are further classified into three levels (1, 2 and 3), where Level 1 is AC and DC slow chargers, Level 2 is Fast AC chargers, and Level 3 is DC Fast charging.
To put it broadly, in an Indian context, Level 1 chargers are used to charge scooters/two-wheelers at home, Level 2 are used to charge cars at home, and Level 3 chargers are used to charge EVs fast at public chargers.
Types of chargers used in other countries
Different companies and countries worldwide have used different types of chargers over the years. In the US, Tesla has always used its chargers called the NACS (North American Charging Standard) for AC and DC charging. Chevrolet and Ford have used the J1772 charger in their cars. Due to the popularity and expanse of Tesla Superchargers across North America, Ford cars from 2024 will now support adapters, enabling their cars to access the Tesla Supercharger network.
Combined Charging System (CCS) chargers have been the most popular in Europe. It allows for both AC and DC charging. The IEC 62196 charger's original form was modified by the SAE and European Automobile Manufacturers Association (ACEA) to include two extra pins that allowed DC charging. A host of German car manufacturers adapted to it, and the EU mandated CCS Type 1 or Type 2 chargers to be present on every car in 2013.
In Japan, the CHAdeMO charger is the most popular one. It was developed by the Tokyo Electric Power Company (TEPCO). TEPCO participated in numerous EV infrastructure trial projects between 2006 and 2009 in collaboration with Nissan, Mitsubishi, and Fuji Heavy Industries (now Subaru). It is popular in Japan but has yet to gain much popularity outside.CHAdeMO connectors use direct current (DC) to power up the car's battery and carry out the conversion from alternating current (AC) in the charging point.
Chinese companies use the GB/T charging system, which the Standardization Administration of China maintains. It has different chargers for all three levels that are generally used but incompatible with any other charger.
Types of chargers used in India
In India, though, the situation is different. Most electric cars in India use the CCS type-2 connectors, first introduced by the Nexon EV. Most cars sold in the Indian market are equipped with Type 2 CCS chargers, which can be used for AC and DC charging. Earlier, the Tata Tigor EV and the Mahindra e-Verito used the Bharat DC charger based on the GB/T platform.
The problem here is with two-wheelers.
India has many more ICE two-wheelers than any other vehicle, and the same is true for EVs. According to the Society of Manufacturers of Electric Vehicles, between 2017/18 and 2022/23, 1082344 electric two-wheelers were sold, while only 80141 electric four-wheelers were sold in the country. Electric three-wheelers came second, with 1016375 being sold (almost as much as electric two-wheelers). Hence, any policy made must keep this in mind. In general, though, policy about chargers in India needs to be more consistent.
Like most examples of standardisation (some of which are discussed later), the main reason is interoperability, which is the ability of equipment or groups to operate in conjunction with each other. It would be much easier for customers, manufacturers, charging station operators etc if all EVs had the same kind of charger, or if all EVs were compatible with one charger type.
Another potential reason for this would be to reduce the financial, technological and infrastructural burden of public charging providers. The government intends to be a first mover and create a ubiquitous charging network in the country. With so many different chargers being used in the country, the cost of such public chargers could increase dramatically.
Creating such a standard may be a premature move at this point in time. Note that this would be in addition to already existing safety, manufacturing and design mandates. But similar mandates have been made in other jurisdictions.
Recent examples
A recent example of such a mandate would be the EU USB-C mandate. It mandated USB-C type charging ports in all mobile phones, tablets and cameras sold in the region by the end of 2024. It will also extend to laptops in 2026. The main arguments against any standardisation legislation prescribing a single kind of connector, were that innovation would be limited and companies could eventually become dependent on a single supplier.
So the EU placed no restrictions on wireless charging and chose USB-C, which isn't just a worldwide standard for speed, versatility and port but is also set by USB-IF, a non-profit firm that makes the design accessible. The main reasons behind it were reducing e-waste (different chargers/wires for different devices) and unnecessary money spent on buying different chargers. Eventually, though, it boils down to interoperability. There are still some who don't like this decision.
As mentioned before, the EU also mandated the use of CCS-2 chargers in 2013. People made similar arguments then, too, but other problems, such as lack of charging infrastructure, unreliability, confusing payment systems, etc, were also discussed. Since then, the EU has also released guidelines for installing highway chargers. Even Tesla uses the EU-mandated chargers in their cars.
This decision might be a step in the right direction, but much more needs to be done. On the government side, there needs to be more public chargers and more incentives (potential guidelines of FAME-III were released) to better and increase the adoption of EVs, if that is the goal. There also needs to be clarity about these goals.
Next Steps…?
The Ministry of Power released electric vehicle charging infrastructure guidelines in February 2019. It tried to lay out a standard plan for all EV chargers, including land and charger requirements. It reflects the government's plans to install one public charging station every 25 km on highways and fast chargers every 25 km. In another plan, the Ministry also revealed plans to have one charger in every 3x3 km block in the country's urban areas.
The former document mandated that every charging station include one CCS, CHAdeMO, Type-2 AC fast charger and one Bharat DC-001 and Bharat AC-001 charger. Even this wouldn't have been enough. As the data compiled above shows, there are many different companies in this space, and they use multiple chargers. If the government tried to include all of them, it would've been a logistical and financial nightmare, something the report also mentions.
There also needs to be widely available systems to display the right information. For example, the government provides at least three different databases of electric chargers under the Central Energy Authority, e-AMRIT and the Bureau of Energy Efficiency websites. The CEA has a database of charger locations, which contains a PDF containing data for 372 chargers, of which information on the type of charger, about only 37 has been provided.
The e-AMRIT website includes a map of chargers with only EESL stations, primarily concentrated in Delhi. The Bureau of Energy Efficiency offers a map of thousands of charging stations/points with additional information such as rating of contact detail, address, green power availability, charger, price, and charger availability (which doesn't work). Still, its reliability remains to be seen. Third-party apps like Google Maps and Car Dekho provide a better and more reliable database.
The government also needs to make clear whether this standard will be mandated in vehicles and how it will be used in different types of vehicles. If it forces this standard on companies, there will most definitely be backlash. Also if it wants foreign EV manufacturers like Tesla to come to the country to sell and manufacture, this will be another hurdle in that journey. How the government will implement it, how and whether it will be enforced, and to which types of EVs the rules will apply are some of the big questions that remain.
It makes us think about whether government regulation would even be good. An alternative is partnerships between private players, where they come together and create a standard for the industry to use unanimously, similar to how major tech players developed USB-C.
To conclude, this government mandate generates more questions than answers. If the government wants to develop the EV sector, regulation that is clear, easy to implement and beneficial will be needed.
Technomachy 2: VinFast to fast-track Indian EV manufacturing?
— Saurabh Todi
Vietnamese electric vehicle (EV) maker VinFast announced that it will set up its first EV and battery manufacturing facility in India. It has agreed to invest up to $2 billion for this purpose with initial investment expected to be around $500 million over the first five years. The project will generate around 3,000 to 3,500 jobs and is expected to produce around 150,000 units of EVs annually.
India has been trying to convince EV makers such as Tesla and VinFast to set up shop in India. Furthermore, there are speculations that Tesla may announce its decision to enter the Indian market and manufacture EVs here at the upcoming Vibrant Gujarat Summit. So this announcement by VinFast further acts as an indicator of global interest in the Indian market and manufacturing.
India’s EV policy provides a range of incentives to both EV manufacturers and consumers and also focuses on developing charging infrastructure for EVs. The government has set a target of 30% of all new vehicle sales to be EVs by 2030. The policy is set apart from existing subsidies under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) and Production-Linked Incentive (PLI) schemes.
There are PLIs for automobiles and Advanced Chemistry Cells in effect already. If a Tesla announcement is forthcoming, it will be a significant shot in the arm for Indian manufacturing, especially in the EV sector. Just as Apple has been able to act as a lightning rod for development and expansion of domestic mobile manufacturing ecosystem in India, Tesla and VinFast are expected to do the same for EV manufacturing sector.
It will be worth tracking what additional incentives, such as duty exemptions etc are provided to Tesla or VinFast, and for how long will these subsidies stay. Recent experience with electric two wheeler sales witnessing notable decline after government reduced incentives under its FAME II scheme and demand from industry for continuing incentives under FAME III indicates that a much longer gestation period for incentives may be needed.
What We're Reading (or Listening to)
[Opinion] Maldives: Is Muizzu’s pro-China tilt just a balancing act?, by Bharat Sharma
[Opinion] Global Economy 2024: Positives in macro outlook outweighing uncertainties, India in a position to dream big, by Anupam Manur
[Podcast: Puliyabaazi] भारत का विकास पथ कैसा हो? Breaking the Mould ft. Rohit Lamba
[Podcast: All Things Policy] Siliconpolitik: Chip Design in India ft. G S Madhusudan