Tech firms reiterate opposition to telcos’ demand of OTT licensing

Tech industry associations oppose COAI's push to regulate OTT apps like WhatsApp, citing regulatory gap and lack of necessity.

Industry associations representing technology firms once again warned against the Cellular Operators Association of India (COAI)’s advocacy to bring OTT communications apps like WhatsApp under a licensing framework. In response to a TRAI consultation, the Internet & Mobile Association of India (IAMAI), Asia Internet Coalition (AIC), NASSCOM, Broadband India Forum (BIF) and U.S. India Strategic Partnership Forum (USISPF) all opposed the proposal. 

For years, telecom operators have bristled at what they describe as a regulatory gap between firms like WhatsApp and their own highly scrutinised businesses. Civil society and business groups representing the tech firms, however, have pointed out that unlike them, telecom operators have control over “carriage,” or the infrastructure to actually carry data over the internet. 

The counter-submissions in question were made in response to a consultation on service authorisations under the Telecommunications Act, 2023. COAI, which represents the telecom industry, has for years argued that OTT communication apps need to be subject to licensing conditions like they are. 

In a press note summarising all these counter-submissions, the IAMAI said that “there is a clear distinction in the operational and technical and nature of OTT service providers and TSPs,” and that OTT platforms “do not “free ride” as they are greatly driving the revenues generated by telecom service providers.” 

“OTTs are not covered under the ambit of Telecommunications Act, 2023,” Nasscom said in its submission. “There is no need to bring OTTs under Service Authorisation and impose any additional regulatory burden on them.” The industry bodies pointed to IT Minister Ashwini Vaishnaw’s statement in Parliament last year explicitly clarifying that OTT platforms are not covered under the Telecom Act.