Explained | Why is the government pushing for regulatory mechanisms for OTT services?  Premium

TRAI is likely to issue guidelines soon on whether OTT services should be regulated or continue to operate as is. Telecom Service Providers argue OTTs should be regulated and charged, while Internet Service Providers and IAMAI believe no additional regulations are needed. Broadband India Forum opposes any selective ban on OTT services. TRAI is set to issue guidelines on whether OTT services should be regulated or continue as is. Telecom Service Providers argue for regulation and charging, while Internet Service Providers and IAMAI oppose additional regulations. Broadband India Forum opposes selective ban on OTT services. Source-level blocking proposed by COAI to achieve desired outcome without difficulties.

The story so far: On July 7, the Telecom Regulatory Authority of India (TRAI) invited responses to a consultation paper it released on a regulatory mechanism for over-the-top (OTT) communication services. The paper also mentions selective banning of these services. Since most stakeholders have submitted their responses to the regulatory body, as the submission date ended on September 1, it is likely to issue guidelines in the coming days on whether OTT services should be regulated or be let to continue to operate as it is.

The discussion on the selective banning of OTT services came after a Parliamentary Standing Committee issued a notice to the Department of Telecom (DoT) to explore this option due to the unrest caused by these platforms which have mass reach and impact.

It is important to note that only OTT communication services like WhatsApp, Signal, Meta, Google Meet, Zoom, X, etc. were discussed in the consultation paper and not the ‘content’ OTTs such as Netflix, Amazon Prime etc. Content regulation is an altogether different subject and it comes under the ambit of the Ministry of Information and Broadcasting (MIB) and not the TRAI.

The TRAI has also asked stake holders to define OTT, and a proposal on cost-sharing mechanisms between Telecom Service Providers (TSPs) and OTT services.

Telecom Service Providers are of the opinion that OTTs should be regulated and charged because they use and thrive on the infrastructure built by operators over the years. Currently, they aren’t.

“OTT communications services have led to erosion of revenues for the telcos. These platforms offer users an array of services, sending of Multimedia Messaging Services (MMS), instant messaging to voice and video calls, delivered over the internet. This circumvents the need for traditional telecom services, particularly voice calls and text messages, leading to a significant reduction in the revenue streams of telecom companies,” responded the Cellular Operators Association of India (COAI), representing telecom players like Jio, Airtel and Vodafone Idea.

COAI argues, “OTT communication service providers neither contribute to the exchequer nor make investments like the TSPs in spread of network infrastructure in the country. The OTT communication service providers take a free ride on TSP funded networks without contributing to the setting up and maintaining digital infrastructure for access networks.”