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OTT Players Need a Structured Regulatory Framework, Says TRAI Chairman

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In Short:

India’s telecom regulator, Anil Kumar Lahoti, emphasized the need for structured regulations on over-the-top (OTT) communication apps due to concerns from law enforcement and telecom companies. While OTT services benefit users, they also create challenges for traditional providers. Lahoti highlighted the importance of fair competition and industry standards. Trai has also signed a cooperation agreement with Saudi Arabia for telecommunications.


Regulatory Framework for OTT Communication Apps

Concerns regarding the regulation of over-the-top (OTT) communication applications have prompted calls for a more structured regulatory framework, as highlighted by India’s top regulatory official on Wednesday. Anil Kumar Lahoti, Chairman of the Telecom Regulatory Authority of India (Trai), emphasized the need for regulation in light of apprehensions raised by law enforcement agencies and traditional telecom carriers.

Transformative Impact of OTT Services

During his remarks at the India Mobile Congress 2024, Lahoti acknowledged that the emergence of OTT services, including messaging applications and user interface platforms, has significantly transformed global communication. He noted that while these services have provided innovative and convenient connection methods for consumers and businesses alike, they have also led to regulatory challenges, particularly concerning competition and compliance with legal standards.

Bilateral Cooperation Agreement

On a related note, Trai has entered into a bilateral agreement with the Saudi Arabian telecom and broadcasting authorities to enhance cooperation between the two organizations.

Challenges in Regulatory Balance

Lahoti highlighted the global challenge regulators face in striking a balance between fostering innovation in OTT services and maintaining a fair, competitive market, especially given the cross-border nature of these services.

Industry Calls for a Level Playing Field

The ongoing tensions between telecom service providers and OTT application developers have led to demands for a regulatory regime that ensures equitable compensation for network usage. Industry leaders, including Reliance Jio, Bharti Airtel, and Vodafone Idea, alongside organizations such as the Cellular Operators Association of India (COAI) and GSMA, based in London, have reiterated the necessity for a level playing field in the industry.

The Importance of Standardization

Lahoti also underscored that standardization is a crucial aspect within the telecom sector, especially as it facilitates interoperability among diverse networks and devices. “Service standardization plays a critical role in the telecom domain, as technologies evolve rapidly, necessitating the coexistence of multiple technologies,” he stated.

Future Initiatives

Furthermore, Trai is currently working on developing a framework related to spectrum management, particularly for satellite-based communications, to ensure effective coexistence with terrestrial network systems and space broadband services.

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