Global technology giants are facing off against India’s telecom networks in a battle over internet services regulation. The Asia Internet Coalition (AIC), representing major players like Amazon, Apple, Google, Meta, Microsoft, Netflix, and Spotify, is pushing back against attempts to include over-the-top (OTT) services in a new regulatory framework for telecom operators. The AIC argues that OTT services operate differently from traditional telecom services, existing on the application layer rather than the network layer. They do not have the same rights as telecom service providers, such as acquiring spectrum or interconnecting with the public switched telephone network.
The AIC emphasizes that OTT services offer unique functionalities like group chats, voice notes, and in-app content sharing, making them distinct from traditional telecom services. They also point out that OTT services are already regulated under existing laws, including as intermediaries under the IT Act. The coalition warns that including internet services in the new framework could violate net neutrality principles and harm consumer interests.
In response to pressure from top telecom operators in India, such as Bharti Airtel, Reliance Jio, and Vodafone Idea, to bring OTT services under a new authorization framework, the AIC is standing firm. These telcos are seeking contributions from OTT providers to cover network development costs, citing low average revenue per user and the need to boost margins after significant investments in 5G airwaves.
The AIC disputes claims of OTT services „free-riding“ on telecom infrastructure, arguing that they have actually driven increased data consumption and revenues for carriers. They also argue that regulating OTT services under the Telecommunications Act of 2023 would exceed its intended scope, as the Act does not cover OTT services and is already regulated under the IT Act of 2000.
This debate in India reflects similar discussions in other regions like South Korea and Europe, where network operators are also seeking contributions from tech companies. The clash between global technology giants and India’s telecom networks highlights the complexities of regulating internet services in a rapidly evolving digital landscape. As the battle continues, it remains to be seen how these competing interests will be reconciled to ensure a fair and competitive playing field for all stakeholders involved.