In Short:
The exclusion of over-the-top (OTT) communication services from new recommendations by India’s Telecom Regulatory Authority (TRAI) has raised concerns among telecom carriers. SP Kochhar from the Cellular Operators Association of India (COAI) stated that this creates an unfair playing field, as telecom companies remain burdened by compliance costs while OTT services face no similar regulations. He emphasized the need for equal oversight, particularly regarding spam prevention and customer privacy. Additionally, the COAI opposes changes to the authorization process, which they believe undermine existing agreements and disadvantage traditional telecom operators compared to Internet Service Providers.
Telecom Industry Calls for Fairness Amid TRAI’s New Recommendations
NEW DELHI: The recent decision by the Telecom Regulatory Authority of India (TRAI) to exclude over-the-top (OTT) communication services from its new authorisation framework has stirred quite a debate in the telecommunications sector. Industry representatives are voicing concerns that this omission creates an unbalanced playing field and adds yet another layer of financial strain on telecom carriers.
Concerns Raised by COAI
In a statement on Monday, SP Kochhar, Director-General of the Cellular Operators Association of India (COAI), expressed serious concerns over the exclusion of OTT communication services from vital authorisations typically granted to Access Service Providers. He pointed out that this oversight not only reinforces an uneven competitive landscape but also places an unfair burden of compliance and security standards squarely on the shoulders of Telecom Service Providers (TSPs).
“Our worry is that OTT Communication Services are sailing under the radar without any regulatory oversight when it comes to crucial issues like spam prevention,” Kochhar stated. “As these services are rapidly becoming popular alternatives to traditional mobile communications such as phone calls and text messages, their lack of regulation raises significant concerns about market fairness, national security, and customer privacy.”
Calls for Equal Treatment
The telco industry is increasingly advocating for OTT services to be brought under similar regulatory frameworks as mobile operators. They’ve coined the phrase “same-service, same-rule” and are pushing for a ‘fair-share’ revenue model, particularly in light of the explosive growth in data usage as 5G networks gain traction. However, these calls have been met with resistance from OTT companies.
Interestingly, telecom operators interpret the new Act’s definition of telecommunication as encompassing communication apps, a claim that OTT players promptly dismiss, arguing they are already governed by the Information Technology Act.
Authorisation Process Under Scrutiny
According to the COAI, maintaining the current contractual nature of the authorisation process—which involves agreements between the Department of Telecommunications (DoT) and telecom operators—is crucial. They believe this will provide uniformity, regulatory clarity, and protect investors who are interested in long-term commitments within the industry.
Regulatory Changes Raise Eyebrows
The Delhi-based association expressed disappointment over TRAI’s suggestion that the central government should grant Service Authorisation under Section 3(1) of the Telecommunications Act, 2024, rather than relying on a contractual agreement with the entity involved. They argue this lacks valid justification and undermines a successful regime that has prospered for more than three decades and has led to significant investment and growth in the sector.
Kochhar added another layer of concern regarding the expanded scope now being offered to Internet Service Providers under the new authorisation framework. He pointed out that existing Access and National Long Distance (NLD) service providers have historically held exclusive rights to offer leased circuits and Virtual Private Networks (VPNs) to third parties. The proposed changes could substantially disadvantage these established operators.
“These players have built their market position through substantial financial investments and by meeting rigorous eligibility requirements,” Kochhar emphasized, highlighting the potential ramifications of the newly proposed framework.
