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Decoding the convergence bill (I)

Subramanium Vutha

Convergence is on its way, and its coming faster than you think. This edition in our 'Net Effects' series outlines the issues at stake, and explains why regulation is essential in the virtual world

The convergence of computers, communications and multimedia content promises rich new virtual worlds in which distance will no longer be a constraint. People will be connected to each other through virtual ‘superhighways in the air’.

The coming generations will find it easier to identify with like-minded people in other countries than their neighbours. The social and economic repercussions of this kind of convergence are only beginning to be understood, and governments around the world would like to see some regulations and controls in place.

An analogy would help here. Just as air traffic is regulated through a detailed and elaborate framework, including air lanes, flight paths, air traffic controllers, and safety and security regulations, convergence will need to be regulated for various reasons, such as access, security, privacy, and protection of individual rights.

Given the complexity and profusion of convergence technologies and options, this will present new challenges to legislators across the world. The difference is that the number of ‘air lanes’ and ‘flight paths’ relating to convergence will proliferate, intersect and even clash.

Why you should know the convergence bill
The bill will affect each one of us in different spheres of our lives.
It will affect the way we work (using telephones, cell phones, electronic mail, wireless communication, web-based interaction, etc).
It will affect the way we socialise (through chat rooms, special-interest web forums, Internet telephony, video phones, web casting, etc).
It will affect the way we entertain and get entertained (through interactive television sets, multimedia content and programmes, virtual and experiential modes of entertainment, etc).

In other words, every aspect of our lives will be transformed by the power of convergence. For Indians, there are three special reasons for taking interest in convergence.
India is expected to become an entertainment and multimedia content hub for the world.
India’s demographic profile (particularly its huge population of youth) and educational advantages, coupled with its democratic and diverse framework, provide scope for services to the world in every domain area. The most recent discussions have been on medical tourism, because the Indian medical system provides world-class services at low prices.
While China and other countries have an edge in manufacturing, India has all the equipment necessary to become a services superpower. The Internet provides the best environment for such services.

Shifting centre of gravity

To understand the convergence bill, we need to consider how laws will be made and enforced in the future. The bill, and the debate and discussions relating to it, provides a good stimulus for this. In a world sans borders, where communications cross state and country borders millions of times in seconds, it is difficult to visualise how any one country can by itself exercise regulatory control.

Law making in such a scenario appears to be shifting from national capitals to international forums, and we are already seeing some powerful examples of such legislation. For example, India’s import and export policy, tax laws and import tariffs now have to conform to rules set by the World Trade Organisation (WTO). We are already seeing the effects of such conformity in our taxation, budgeting and import duties.

Secondly, international covenants such as the Information Technology Agreement will oblige us to conform to global norms, removing import duties on crucial components of Internet technologies (computers, telecom equipment, etc).

Thirdly, India’s intellectual property rights framework will need to conform to the rules and treaties of the WTO and the World Intellectual Property Organisation. So, just as Indian air transport providers conform to international rules as rigorously as they follow Indian laws, we will find ourselves conforming to and enforcing internationally accepted laws and regulations. In convergence, this appears inevitable.

The second part of this article will consider the key provisions of the convergence bill, which is likely to be placed before Parliament this year. It will also look at the implications of the bill for Indian companies and business executives.

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