Industry associations representing technology firms have once again raised concerns over the Cellular Operators Association of India (COAI)’s push to bring OTT communications apps like WhatsApp under a licensing framework. In response to a consultation by the Telecom Regulatory Authority of India (TRAI), the Internet & Mobile Association of India (IAMAI), Asia Internet Coalition (AIC), NASSCOM, Broadband India Forum (BIF), and U.S. India Strategic Partnership Forum (USISPF) have all opposed the proposal.
Telecom operators have long argued that there is a regulatory gap between their highly scrutinized businesses and OTT communication apps like WhatsApp. They believe that these apps should be subject to the same licensing conditions that they are. However, civil society and business groups representing the tech firms have pointed out that telecom operators have control over the infrastructure, or „carriage,“ to carry data over the internet, unlike OTT platforms.
The counter-submissions made by the industry bodies were in response to a consultation on service authorizations under the Telecommunications Act, 2023. COAI has been advocating for OTT communication apps to be brought under licensing conditions for years.
In a press note summarizing the counter-submissions, IAMAI emphasized that there is a clear distinction in the operational and technical nature of OTT service providers and Telecom Service Providers (TSPs). They argued that OTT platforms do not „free ride“ as they significantly contribute to the revenues generated by telecom service providers.
NASSCOM, in its submission, stated that OTTs are not covered under the Telecommunications Act, 2023, and there is no need to impose additional regulatory burdens on them. They pointed to IT Minister Ashwini Vaishnaw’s statement in Parliament last year, explicitly clarifying that OTT platforms are not covered under the Telecom Act.
Overall, the industry associations representing technology firms are united in their opposition to bringing OTT communication apps under a licensing framework. They argue that OTT platforms play a crucial role in driving revenues for telecom service providers and should not be subjected to the same regulatory requirements. The debate between telecom operators and tech firms is likely to continue as both sides seek to protect their interests in the evolving digital landscape.