The Telecom sector has submitted its recommendations for the draft TRAI OTT Regulation Consultation Paper.
Key Highlights
- TRAI had sought recommendations on Regulation and Selective Banning of OTT services.
- Telecom companies argue that OTTs do not hold a valid licence for providing communication services.
- Telecoms seek a fair share mechanism for bearing costs.
The Telecom Regulatory Authority of India (TRAI) had in July invited recommendations for the Consultation Paper on Regulatory Mechanism for OTT Services and their Selective Banning.
This was after a protracted demand by the Telecom Operators- Reliance Jio, Vodafone Idea (Vi), and Bharti Airtel.
In their submissions during the consultation process, they have contended that Over-The-Top platforms like WhatsApp, Google, and Meta (Holding company of Facebook) should be regulated by TRAI.
Their contention is that these OTT platforms provide communication services through their apps without having valid licenses for the same.
At the same time, the cost of the data traffic generated by the OTTs is borne by the Telecoms. For streaming OTT platforms like Netflix and Amazon, the data generated is humongous, putting fiscal pressures on the telecoms.
Recommendations of Telecoms for TRAI OTT Regulation
To rectify the anomaly wherein OTTs generate an inordinate amount of data while Telecoms bear the complete cost, they have suggested to the regulator to formulate a framework wherein the OTTs pay their fair share within the ecosystem.
The Telecom Service Providers (TSPs) also want the regulator to introduce a licence for the OTTs providing communication services that overlap with their services and have a direct bearing on their revenues.
The Telecommunication companies want the OTTs to contribute towards the development of the 5G infrastruture, since they are direct beneficiaries and important stakeholders.
However, the OTT platforms have fought back against the contentions of the Telecoms by arguing that they are already regulated under the Information Technology Act, 2000 and TRAI’s regulations would stifle innovations in the sector and the comparison is not based upon intelligible differentia.
