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Tech companies reaffirm their stance against telcos‘ request for OTT licensing

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 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) have all opposed the proposal.

Telecom operators have long argued that there is a regulatory gap between OTT communication apps and their own highly scrutinized businesses. They believe that these apps should be subject to the same licensing conditions that they are. However, civil society and business groups representing tech firms have pointed out that telecom operators have control over the infrastructure to carry data over the internet, known as „carriage,“ which sets them apart from OTT platforms.

The counter-submissions made by industry bodies were in response to a consultation on service authorizations under the Telecommunications Act, 2023. The COAI has been advocating for OTT communication apps to be brought under licensing conditions for years, but the IAMAI, AIC, NASSCOM, BIF, and USISPF have all argued against this move.

In a press note summarizing the counter-submissions, the IAMAI emphasized that there is a clear distinction in the operational and technical nature of OTT service providers and Telecom Service Providers (TSPs). They also highlighted 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 any additional regulatory burden on them. They pointed to IT Minister Ashwini Vaishnaw’s statement in Parliament last year, 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 operators and should not be subjected to additional regulatory burdens. 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.

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