Indian telecom firms want new rules for OTT apps

Telecom operators in India, including Reliance Jio, Bharti Airtel, and Vodafone Idea, have recently called for the regulation of over-the-top (OTT) communication apps such as WhatsApp, Google’s RCS, and Telegram under the Telecom Regulatory Authority of India (TRAI). Their argument centres around the notion that these OTT services provide functionalities similar to traditional telecom offerings, such as voice calls and messaging, and should, therefore, be subject to licensing and regulatory oversight.

The following demand stems from concerns that OTT services have significantly impacted their revenue streams, as many consumers now prefer these free or low-cost alternatives over traditional telecom services. In response to this call for regulation, industry bodies representing OTT platforms have firmly rejected the proposal.

The Internet and Mobile Association of India (IAMAI) highlighted the fundamental distinction between telecom service providers (TSPs) operating on the network layer and OTT providers functioning at the application layer. IAMAI argues that imposing additional regulations would disrupt the current ecosystem, potentially stifling innovation and limiting consumer choices in the rapidly evolving digital landscape.

Similarly, the Broadband India Forum (BIF) expressed concerns that creating a single licensing framework for all communication services would be arbitrary and detrimental to competition. They warned that such a move could lead to a concentration of power among a few large players, imposing unnecessary burdens on smaller service providers who wish to operate within specific niches.

NASSCOM also warned that new regulations could raise operational costs for OTT services, ultimately harming consumers and undermining these platforms’ economic benefits to the digital economy.