PESTLE ANALYSIS POLITICAL/LEGAL FACTORS Mobilenumber portability (MNP)

implementation would enable subscribers to move to different service provider

retaining the original number. This implementation would hamper Bharti Airtel as
customers would keep switching to any possible networks available. In India legal
obligations are defined regarding 3G auction and bidding, which proves to be in
favour of Bharti Airtel as this auction is not available to the new entrants. This
political factor forbids the entry of new companies in to 3G services. Due to rising
terrorist activities and hacking of confidential data on air, India Department of
Telecommunication (DoT) has made amendments related to security features which
states that telecom companies should have good policies for security and they
should be responsible for the security of the network.

New Delhi, Mar 18:

The Delhi High Court on Monday stayed the execution of the Government order asking Bharti
Airtel to stop 3G mobile services in areas where it did not have spectrum.
The court has fixed May 8 for the next hearing even as the Department of Telecom has been
asked not to take any action till that date.
The DoT had on Friday sent a notice to Airtel asking it to stop 3G services in circles where it did
not have spectrum within 72 hours. Bharti Airtel had challenged the DoT order in the court on
grounds that the services were legal and permitted by the DoT before the auction for 3G
spectrum began in 2010.
The Delhi High Court also said Airtel would not immediately need to pay the penalty. This is the
second time the High Court has come to the operators rescue. Last year, Airtel had challenged a
similar order from the DoT after which the court directed the department to take action only after
hearing out the operator.
The DoT order has significant implications for Airtel as it will lose its pan-India 3G footprint at a
time when arch-rival Reliance Jio Infocomm is gearing up to launch its data and voice services,
based on 4G technology, across the country. Soon after the spectrum auctions finished in 2010,
Bharti Airtel, Vodafone and Idea Cellular entered into an agreement to offer 3G services across
the country.
The DoT is preparing separate notices for Vodafone and Idea Cellular in this regard and courts
final judgment will impact these players as well.
This was necessitated because none of these players had won pan-India spectrum individually.
This deal that they struck is called an intra-circle roaming agreement.

Current licence rules

The current licence rules permit operators to go in for roaming agreements so that users get
seamless coverage as they move from one circle to another.
But in the case of 3G services, operators are selling connections even where they do not have
spectrum. For example, in Madhya Pradesh neither Bharti Airtel nor Vodafone has 3G spectrum
but both have subscribers. This has been made possible because the two operators have entered
into an agreement with Idea Cellular.
However, the DoT has taken the view that this is not a roaming arrangement.

http://www.thehindubusinessline.com/info-tech/3g-roaming-issue-high-court-stays-dot-orderagainst-airtel/article4522464.ece

1. Legal analysis
2. 24. Telecommunications falls under the legislativecompetence of the
Union and not the States. Consequently the Legal framework
governingTelecommunication Sector is within the control ofthe Union
Government and the Parliament.In India Legal framework, covering
telecomsector include various services like internet, radiopaging, voice mail,
V sat communications, ECommerce, broadcasting services etc. Indian Legal
framework with respect to telecominfrastructure is made up of five main acts
3. 25. The Legal Framework isprovided by: The Indian Telegraph Act
1885.The Wireless Telegraphy Act 1933. The Telegraph Wires (Unlawful
Possession) Act1950. The Cable Television Network (Regulation) Act1996.
4. 26. The genesis of the Telecommunication RegulatoryAuthority of India
(TRAI) lies in the bidding process for thegrant of cellular licenses. First major
dispute, entered into by TRAI, was betweenitself and The Central
Government.The question of grant or amendment of a license by theCentral
Government acting in its capacity as the licensor fallsoutside the jurisdiction
of the powers of TRAI.The TRAI Act which was amended and passed in
2000and the framework relating to the TRAI currently in forcehave been
analyzed subsequently
5. 27. According to the TRAI act amended in 2000, the functions ofthe original
TRAI have now been divided between twoseparate bodies.The Telecom
Regulatory Authority of India (TRAI).The Telecom Disputes Settlement and
Appellate Tribunal.The Recommendatory and Regulatory functions are

vestedwith the TRAI while dispute settlement functions are handledby the
Appellate Tribunal

http://www.slideshare.net/arpit754/pestle-analysis-telecom-sector

legal aspects of bharti airtel (PDF) government rules

and regulation towards bharti airtel.
http://trai.gov.in/Comments/Service-Providers/Bharti-Airtel.pdf