I. UPDATES: Industry Updates: India
1. Telecom Regulatory Authority of India ("TRAI") provides its recommendations on infrastructure and spectrum sharing and leasing:
March 25, 2025: TRAI has issued its response to the back reference received from Department of Telecommunication ("DoT") with respect to TRAI's initial recommendations on the 'Telecommunication Infrastructure Sharing, Spectrum Sharing and Spectrum Leasing' dated April 24, 2024. TRAI has now responded to DoT's prima facie views requesting modifications by TRAI to its previous recommendation on permitting sharing of core network elements among telecom operators. Following are the key recommendations:
A. Access spectrum in any frequency shall be permitted to be shared under inter-band access spectrum sharing, provided that at least 80% of the spectrum held in that band has completed a minimum lock-in period of two years from the date of acquisition.
B. A Telecom Service Provider ("TSP") engaged in inter-band spectrum sharing shall be required to pay a non-refundable inter-band spectrum sharing fee to the Government. The inter-band spectrum sharing agreement must also include a clear exit clause outlining the terms for termination of the arrangement.
C. Access service providers should be permitted to lease their access spectrum which has been acquired through spectrum auction or spectrum trading, or for which market price has been paid, to other access service providers in a licensed service area, subject to the following conditions:
- Right to lease spectrum is subject to compliance with the terms and conditions under the relevant telecommunication service license/ authorization.
- TSP is not eligible to lease spectrum if found in breach of license terms or if its service is under revocation/termination by the Central Government.
- Both lessor and lessee must provide an undertaking of compliance with all the terms and conditions of rules/ guidelines for spectrum leasing.
- In case of non-compliance, the Central Government reserves the right to take appropriate action, which inter-alia may include annulment of leasing arrangement.
2. Indian Government expands AI-Driven Skilling
March 19, 2025: Under the IndiaAI Mission, a call for proposals was issued to startups, researchers and entrepreneurs for developing foundational AI models trained on Indian datasets, which has resulted in a total of 67 submissions focused on Large Language Models ("LLMs") and domain-specific models ("SLMs").
The Ministry of Electronics and Information Technology ("MeitY") also launched the Digital India Bhashini initiative to build speech-to-speech machine translation systems for various Indian languages and dialects and to evolve a Unified Language Interface.
Additionally, IndiaAI, in collaboration with Meta, has announced the establishment of the Centre for Generative AI, Srijan (सृजन) at IIT Jodhpur, along with the launch of the "YuvAi Initiative for Skilling and Capacity Building" in collaboration with the All-India Council for Technical Education, for the advancement of open-source AI in India. The partnership will enable development of indigenous AI applications, advance skill development in AI, boost research capabilities with the aim of contributing to India's AI mission of ensuring tech sovereignty and the vision of building AI solutions that are tailor-made for India.
3. Advertising Standards Council of India ("ASCI") releases report on AI's impact on Indian Advertising:
March 18, 2025: ASCI released its latest report 'AdNext: The AI Edition' ("Report"), an in-depth exploration into the impact of AI with a specific focus on the advertising and enhancing consumer experiences. The Report sheds light on the key trends, opportunities and challenges associated with AI in advertising by exploring four areas of enquiry to derive the following learnings:
A. Perception of AI - The integration of AI in advertising is transforming brand experiences by driving efficiency and innovation. However, its responsible adoption requires agile governance frameworks and strategic oversight.
B. Industry adoption and readiness - The Report examines the current landscape of AI adoption across various sectors in India, noting that digital-native industries are embedding AI more seamlessly into their core operations compared to legacy sectors, which are finding creative ways to integrate AI through customer-centric applications. As a result, it becomes necessary for companies to establish robust internal guardrails—especially at the input and process stages, allowing them to have competitive advantage in mitigating risks while maximising innovation.
C. Consumer centricity - While AI enhances personalization and efficiency, brands must preserve trust by ensuring transparency in AI-driven marketing. To avoid misleading consumers, it is essential to label Generative AI content where appropriate. However, mandatory disclosures should be context-driven and applied where such content may influence consumers to make ill-informed decisions or purchases.
D. A responsible AI framework - Responsible AI frameworks and principles are vital for the digital ecosystem, particularly in a diverse and rapidly evolving landscape like India. The Report enlists the following principles that should guide the development and deployment of AI across all sectors, including advertising:
" Social benefit - ensuring that advertising content does not promote harmful stereotypes, misinformation, or products that could negatively impact social well-being.
" Bias avoidance - AI algorithms used for digital advertising should avoid creating, or reinforcing, unfair biases.
" Safety and security - AI systems must be built and tested for safety. This includes ensuring that AI-driven ad placements do not lead to the spread of harmful content or malicious links.
" Accountability - AI advertising systems should be accountable to people. This means providing users with opportunities to give feedback, understand why they are seeing certain ads, and report any issues.
" Privacy by design - This includes providing notice and consent for the use of data, using privacy-enhancing technologies and giving users control over their data. This becomes important with regards to personal data collected for ad targeting.
" Dynamic approach - Standards should be reviewed and updated on a regular basis to keep pace with technological advances.
4. TRAI recommends the definition of 'International Traffic':
March 18, 2025: TRAI has issued its response to the back reference received from DoT on the definition of 'International Traffic'. DoT had requested TRAI to provide recommendations on the definitions of International SMS and Domestic SMS. Though on a prima facie basis the recommendations of TRAI were accepted, DoT nonetheless sought some additional clarifications.
The relevant definitions are as follows:
"International Traffic means the traffic originating in one country and terminating in another country, where one of the countries is India".
"International SMS Message means the international traffic delivered using SMS".
Further, TRAI recommended that the definition of 'International SMS Message' be clarified to include the following explanation "Any incoming application to person ("A2P") SMS message, shall be treated as an international SMS message, if it cannot be generated, transmitted or received without the use or intervention of any electronic device, computer system or computer application located outside India".
In this context, the DoT sought clarification on whether all categories of International SMS, including A2P messages, must necessarily be routed through an International Long Distance ("ILD") gateway. After examining the prima facie views of DoT, TRAI stated that all outgoing and incoming international SMS messages originating in the public switched telephone network /public land mobile network of foreign carriers should be routed through ILD gateways for onward transmission to access service providers in India. However, any A2P SMS message delivered to service providers by telemarketers in India should not be routed through an ILD gateway. The detailed recommendation can be accessed here.
5. MeitY launched several key initiatives to boost the AI Ecosystem:
March 6, 2025: MeitY launched several key initiatives under the IndiaAI Mission during its anniversary celebration. The IndiaAI Mission, approved in March 2024, is a landmark initiative dedicated to fortifying India's AI ecosystem through strategic programs and partnerships spanning both public and private sectors. Following are the newly launched initiatives:
A. AIKosha: provides a repository of datasets, models and use cases to enable AI innovation. It also features AI sandbox capabilities through an integrated development environment along with tools and tutorials.
B. IndiaAI Compute Portal: offers AI compute, network, storage, platform and cloud services at discounted rates to startups, MSMEs, academia, researchers, etc.
C. AI Competency Framework for Public Sector Officials: aims to equip public sector officials with skills related to AI competency mapping and upskilling initiatives.
D. iGOT-AI: AI-powered personalized content recommendation system, developed to enhance the learning experience for government officials.
E. IndiaAI FutureSkills Fellowship: this initiative is conceptualized to mitigate barriers to enter into AI programs and increase AI courses in undergraduate, masters-level and Ph.D. programs.
These newly launched initiatives will serve as a pivotal enabler for AI research, innovation and application development in India, fostering an inclusive and responsible AI ecosystem.
6. Role of Quantum Computing in National Security highlighted by NITI Aayog:
March 5, 2025: Recently, NITI Frontier Tech Hub ("NITI-FTH") has been established as a Frontier Tech Action Tank to accelerate India's transition into a frontier tech nation and has released a strategic paper on the rapid evolution of 'Quantum Computing, its implications on National Security' ("Paper").
The Paper highlights the following five ways of how quantum computing reshapes national security:
A. Cryptography and Cybersecurity: A sufficiently powerful, fault-tolerant quantum computer ("CRQC") can break widely used public-key encryption algorithms, rendering modern internet security, online banking and secure communications obsolete.
B. Intelligence Gathering: Quantum computing could revolutionize intelligence analysis by processing vast, complex datasets far beyond classical capabilities. It would enhance signals intelligence, allowing nations to intercept, analyze and decode communications at an unprecedented scale.
C. Military Applications: Quantum algorithms will optimize logistics, resource allocation and battlefield strategy, making defense operations more efficient. Quantum-enabled AI will power autonomous military drones and robotic systems, enhancing both offensive and defensive capabilities.
D. Economic Warfare: Quantum computers can be used to break current encryption, destabilize financial markets, compromise banking systems and steal sensitive intellectual property leading to a new era of economic espionage.
E. Geopolitical Power: Nations that achieve early breakthroughs in quantum computing will establish a technological and knowledge base that others will struggle to replicate. Dominance in quantum will also allow countries to shape global technology standards and norms, influencing international regulations.
To address uncertainty associated with quantum technology, the Paper, inter alia, recommends establishing a task force to track global quantum advancements, establishing bilateral partnerships for rapid adoption, especially the modalities that offer scalability and adapting investment priorities based on emerging breakthroughs.
7. TRAI recommends the framework for service authorization to provide the telecommunication services under the Telecommunication Act, 2023 ("Telecommunication Act"):
February 28, 2025: TRAI has issued its response to the back reference received from DoT with respect to TRAI's initial recommendations on the 'Framework for Service Authorisations to be Granted Under the Telecommunications Act' dated September 18, 2024. TRAI has now responded to DoT's prima facie views requesting modifications by TRAI to its previous recommendation. Following are the key recommendations made:
A. Separate authorization for internet service and Machine-to-Machine Wide Area Network Service ("M2M WAN Service") has been recommended to attract investment in the internet service segment and to enable start-ups and small business entities with limited financial strength for providing M2M WAN Services, respectively.
B. The authorised entity may share core network elements—such as the mobile switching centre, home location register and intelligent network—with other entities holding access service authorization. However, such sharing is permitted only if it does not reduce the number of independent core networks for the relevant telecommunication service to less than two.
C. The authorised entities should be permitted to take telecommunication network resources on lease or hire, as per the scope of their service authorisations, from the entities holding Cloud-hosted Telecom Network ("CTN") Provider Authorisation under Section 3(1)(b) of the Telecommunication Act and such network resources shall be treated as part of the network of the authorised entity, provided that:
- All security related compliances shall be the responsibility of the authorised entity.
- The authorised entity shall follow the measures notified in respect of the procurement of telecommunication equipment and telecommunication services only from trusted sources.
- The authorised entity shall follow the measures prescribed to protect and ensure cyber security of telecommunications networks including critical telecommunication infrastructure and telecommunication services.
8. TRAI recommends the framework for service authorization for provision of broadcasting services under the Telecommunication Act:
February 21, 2025: Ministry of Information and Broadcasting ("MIB") sought recommendations of TRAI on the terms and conditions, including fees or charges; for authorization to provide broadcasting services, aligning it to the Telecommunication Act and harmonizing the terms and conditions across various service providers. The recommendations aim to regulate broadcasting services including those for television channel broadcasting, news agency for television channel, teleport hub, direct to home ("DTH") service, head end in the sky ("HITS") service, etc. Following are the key recommendations made:
A. Broadcasting service authorizations shall be granted under Section 3(1)(a) of the Telecommunication Act in place of the extant practice of issuing license/permission under Section 4 of the Indian Telegraph Act, 1885.
B. Two sets of terms and conditions should be adopted while framing the rules, namely 'The Broadcasting (Grant of Service Authorizations) Rules' and 'The Broadcasting (Television Channel Broadcasting, Television Channel Distribution, and Radio Broadcasting) Services Rule.
C. Migration of existing licensee/permission holder to new authorisation regime shall be voluntary, till the expiry of their license/permission. Further, no processing fee or entry fee will be required for migration, in case of broadcasting services.
D. Registration of multi-system operator ("MSO") and local cable operators ("LCO") shall be considered to be brought under the purview of Telecommunication Act and thereafter, the provisions related to registration and operations of MSOs (and LCOs) governed by the Cable Television Networks (Regulation) Act, 1995 may be repealed.
E. Service authorization for 'Terrestrial Radio Service' to be delinked from frequency assignment and the auction of spectrum for frequency assignment for Terrestrial Radio Service shall be done separately.
II. Judgements:
High Court
1. Social Media Company X Corporation states that it cannot be compelled to onboard SAHYOG Portal:
March 18, 2025: In Shabana v. Government of NCT of Delhi & Ors. (W.P. (CRL) 1563/2024), the Hon'ble Delhi High Court has been dealing with the issue of timely cooperation from social media platforms in investigations involving Child Sexual Exploitation and Abuse Material ("CSEAM").
In the course of proceedings, X Corporation (formerly Twitter) had resisted onboarding the 'SAHYOG' portal developed by Ministry of Home Affairs ("MHA"), citing Shreya Singal v. Union of India (2015 (5) SCC 1) and arguing that the 'SAHYOG' portal operates outside the statutory framework of Section 69A of the Information Technology Act, 2000, lacking the procedural safeguards therein. X Corporation has also asserted that it already operates its own legal request portal and has acted promptly in removing CSEAM-related content within 24 hours. It was also asserted that a writ petition has been filed by X Corporation before the Karnataka High Court, seeking protection from any coercive action due to non-compliance with the 'SAHYOG' onboarding directive.
The 'SAHYOG' portal was launched by MHA in response to concerns over delays in data access to law enforcement agencies. It is a common portal to which all authorised agencies of the Central Government, States and UTs including social media platforms have joint access for ensuring immediate action against unlawful online information. Currently, 38 intermediaries—including Telegram, Google, YouTube and various cryptocurrency exchanges—have onboarded the portal, enabling streamlined and expeditious information-sharing with investigative authorities.
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